Correlation Between BPCEGP and Aegon NV
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By analyzing existing cross correlation between BPCEGP 2045 19 OCT 27 and Aegon NV ADR, you can compare the effects of market volatilities on BPCEGP 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 BPCEGP with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPCEGP and Aegon NV.
Diversification Opportunities for BPCEGP and Aegon NV
Very weak diversification
The 3 months correlation between BPCEGP and Aegon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BPCEGP 2045 19 OCT 27 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 BPCEGP 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 BPCEGP 2045 19 OCT 27 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 BPCEGP i.e., BPCEGP and Aegon NV go up and down completely randomly.
Pair Corralation between BPCEGP and Aegon NV
Assuming the 90 days trading horizon BPCEGP 2045 19 OCT 27 is expected to under-perform the Aegon NV. In addition to that, BPCEGP is 1.08 times more volatile than Aegon NV ADR. It trades about -0.14 of its total potential returns per unit of risk. Aegon NV ADR is currently generating about 0.05 per unit of volatility. If you would invest 597.00 in Aegon NV ADR on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Aegon NV ADR or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 15.87% |
| Values | Daily Returns |
BPCEGP 2045 19 OCT 27 vs. Aegon NV ADR
Performance |
| Timeline |
| BPCEGP 2045 19 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aegon NV ADR |
BPCEGP and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPCEGP and Aegon NV
The main advantage of trading using opposite BPCEGP and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPCEGP 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.The idea behind BPCEGP 2045 19 OCT 27 and Aegon NV ADR 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 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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