Correlation Between Sampo OYJ and Ageas SA/NV
Can any of the company-specific risk be diversified away by investing in both Sampo OYJ and Ageas SA/NV 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 Sampo OYJ and Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo OYJ and ageas SANV, you can compare the effects of market volatilities on Sampo OYJ and Ageas SA/NV 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 Sampo OYJ with a short position of Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo OYJ and Ageas SA/NV.
Diversification Opportunities for Sampo OYJ and Ageas SA/NV
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sampo and Ageas is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sampo OYJ and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and Sampo OYJ 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 Sampo OYJ are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Sampo OYJ i.e., Sampo OYJ and Ageas SA/NV go up and down completely randomly.
Pair Corralation between Sampo OYJ and Ageas SA/NV
Assuming the 90 days horizon Sampo OYJ is expected to under-perform the Ageas SA/NV. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sampo OYJ is 1.67 times less risky than Ageas SA/NV. The pink sheet trades about -0.21 of its potential returns per unit of risk. The ageas SANV is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 5,179 in ageas SANV on August 24, 2024 and sell it today you would lose (93.00) from holding ageas SANV or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sampo OYJ vs. ageas SANV
Performance |
| Timeline |
| Sampo OYJ |
| Ageas SA/NV |
Sampo OYJ and Ageas SA/NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo OYJ and Ageas SA/NV
The main advantage of trading using opposite Sampo OYJ and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo OYJ position performs unexpectedly, Ageas SA/NV 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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.| Sampo OYJ vs. iA Financial | Sampo OYJ vs. Sun Life Financial | Sampo OYJ vs. Athene Holding | Sampo OYJ vs. Assicurazioni Generali SpA |
| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV vs. Zurich Insurance Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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