Correlation Between ATT and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc ELKS and Aegon Funding, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Aegon Funding.
Diversification Opportunities for ATT and Aegon Funding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc ELKS and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding and ATT 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 ATT Inc ELKS 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 ATT i.e., ATT and Aegon Funding go up and down completely randomly.
Pair Corralation between ATT and Aegon Funding
If you would invest 2,085 in Aegon Funding on November 18, 2024 and sell it today you would earn a total of 8.00 from holding Aegon Funding or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ATT Inc ELKS vs. Aegon Funding
Performance |
| Timeline |
| ATT Inc ELKS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Aegon Funding |
ATT and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Aegon Funding
The main advantage of trading using opposite ATT and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.The idea behind ATT Inc ELKS and Aegon Funding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aegon Funding vs. Freedom Holding Corp | Aegon Funding vs. Seadrill Limited | Aegon Funding vs. PennantPark Floating Rate | Aegon Funding vs. Artisan Partners Asset |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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