Correlation Between Proficient Auto and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and Aegon Funding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Proficient Auto and Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and Aegon Funding, you can compare the effects of market volatilities on Proficient Auto and Aegon Funding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Proficient Auto with a short position of Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Aegon Funding.
Diversification Opportunities for Proficient Auto and Aegon Funding
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Proficient and Aegon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding and Proficient Auto is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Proficient Auto Logistics, are associated (or correlated) with Aegon Funding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon Funding has no effect on the direction of Proficient Auto i.e., Proficient Auto and Aegon Funding go up and down completely randomly.
Pair Corralation between Proficient Auto and Aegon Funding
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to generate 2.24 times more return on investment than Aegon Funding. However, Proficient Auto is 2.24 times more volatile than Aegon Funding. It trades about 0.02 of its potential returns per unit of risk. Aegon Funding is currently generating about -0.11 per unit of risk. If you would invest 915.00 in Proficient Auto Logistics, on September 15, 2024 and sell it today you would earn a total of 6.00 from holding Proficient Auto Logistics, or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Aegon Funding
Performance |
| Timeline |
| Proficient Auto Logi |
| Aegon Funding |
Proficient Auto and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Aegon Funding
The main advantage of trading using opposite Proficient Auto and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, Aegon Funding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aegon Funding will offset losses from the drop in Aegon Funding's long position.| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. GXO Logistics | Proficient Auto vs. Forward Air |
| Aegon Funding vs. Lindblad Expeditions Holdings | Aegon Funding vs. SFL Corporation | Aegon Funding vs. Proficient Auto Logistics, | Aegon Funding vs. Aldel Financial II |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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