Correlation Between 05523RAE7 and Aegon NV
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By analyzing existing cross correlation between BALN 3 15 SEP 50 and Aegon NV ADR, you can compare the effects of market volatilities on 05523RAE7 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 05523RAE7 with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of 05523RAE7 and Aegon NV.
Diversification Opportunities for 05523RAE7 and Aegon NV
Weak diversification
The 3 months correlation between 05523RAE7 and Aegon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BALN 3 15 SEP 50 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 05523RAE7 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 BALN 3 15 SEP 50 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 05523RAE7 i.e., 05523RAE7 and Aegon NV go up and down completely randomly.
Pair Corralation between 05523RAE7 and Aegon NV
Assuming the 90 days trading horizon 05523RAE7 is expected to generate 1.08 times less return on investment than Aegon NV. In addition to that, 05523RAE7 is 1.42 times more volatile than Aegon NV ADR. It trades about 0.04 of its total potential returns per unit of risk. Aegon NV ADR is currently generating about 0.06 per unit of volatility. If you would invest 580.00 in Aegon NV ADR on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Aegon NV ADR or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.71% |
| Values | Daily Returns |
BALN 3 15 SEP 50 vs. Aegon NV ADR
Performance |
| Timeline |
| BALN 3 15 |
| Aegon NV ADR |
05523RAE7 and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 05523RAE7 and Aegon NV
The main advantage of trading using opposite 05523RAE7 and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 05523RAE7 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.| 05523RAE7 vs. Uber Technologies | 05523RAE7 vs. Paysafe | 05523RAE7 vs. Usio Inc | 05523RAE7 vs. Acm Research |
| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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