Correlation Between Service Properties and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Service Properties and Aegon 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 Service Properties and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Service Properties Trust and Aegon NV ADR, you can compare the effects of market volatilities on Service Properties and Aegon 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 Service Properties with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Service Properties and Aegon NV.
Diversification Opportunities for Service Properties and Aegon NV
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Service and Aegon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Service Properties Trust and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR and Service Properties 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 Service Properties Trust are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV ADR has no effect on the direction of Service Properties i.e., Service Properties and Aegon NV go up and down completely randomly.
Pair Corralation between Service Properties and Aegon NV
Considering the 90-day investment horizon Service Properties Trust is expected to under-perform the Aegon NV. In addition to that, Service Properties is 2.31 times more volatile than Aegon NV ADR. It trades about -0.08 of its total potential returns per unit of risk. Aegon NV ADR is currently generating about 0.0 per unit of volatility. If you would invest 635.00 in Aegon NV ADR on September 3, 2024 and sell it today you would lose (1.00) from holding Aegon NV ADR or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Service Properties Trust vs. Aegon NV ADR
Performance |
| Timeline |
| Service Properties Trust |
| Aegon NV ADR |
Service Properties and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Service Properties and Aegon NV
The main advantage of trading using opposite Service Properties and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Service Properties position performs unexpectedly, Aegon 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Service Properties vs. Grupo Simec SAB | Service Properties vs. Grocery Outlet Holding | Service Properties vs. United States Steel | Service Properties vs. Insteel Industries |
| Aegon NV vs. Global Indemnity PLC | Aegon NV vs. Erie Indemnity | Aegon NV vs. AMERISAFE | Aegon NV vs. Diamond Hill Investment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |