Correlation Between Primo Brands and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both Primo Brands 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 Primo Brands and Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primo Brands and Aegon Funding, you can compare the effects of market volatilities on Primo Brands 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 Primo Brands with a short position of Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primo Brands and Aegon Funding.
Diversification Opportunities for Primo Brands and Aegon Funding
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Primo and Aegon is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Primo Brands and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding and Primo Brands 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 Primo Brands 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 Primo Brands i.e., Primo Brands and Aegon Funding go up and down completely randomly.
Pair Corralation between Primo Brands and Aegon Funding
Given the investment horizon of 90 days Primo Brands is expected to generate 2.05 times more return on investment than Aegon Funding. However, Primo Brands is 2.05 times more volatile than Aegon Funding. It trades about 0.19 of its potential returns per unit of risk. Aegon Funding is currently generating about 0.03 per unit of risk. If you would invest 1,480 in Primo Brands on September 14, 2024 and sell it today you would earn a total of 1,660 from holding Primo Brands or generate 112.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Primo Brands vs. Aegon Funding
Performance |
| Timeline |
| Primo Brands |
| Aegon Funding |
Primo Brands and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primo Brands and Aegon Funding
The main advantage of trading using opposite Primo Brands and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primo Brands 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.| Primo Brands vs. Freedom Internet Group | Primo Brands vs. Stratasys | Primo Brands vs. Transportadora de Gas | Primo Brands vs. Montauk Renewables |
| Aegon Funding vs. RiverNorth Specialty Finance | Aegon Funding vs. Royce Micro Cap | Aegon Funding vs. First Trust Enhanced | Aegon Funding vs. Voya Global Advantage |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |