Correlation Between 85855CAA8 and Aegon NV
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By analyzing existing cross correlation between STLA 1711 29 JAN 27 and Aegon NV ADR, you can compare the effects of market volatilities on 85855CAA8 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 85855CAA8 with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of 85855CAA8 and Aegon NV.
Diversification Opportunities for 85855CAA8 and Aegon NV
Good diversification
The 3 months correlation between 85855CAA8 and Aegon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding STLA 1711 29 JAN 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 85855CAA8 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 STLA 1711 29 JAN 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 85855CAA8 i.e., 85855CAA8 and Aegon NV go up and down completely randomly.
Pair Corralation between 85855CAA8 and Aegon NV
Assuming the 90 days trading horizon STLA 1711 29 JAN 27 is expected to under-perform the Aegon NV. In addition to that, 85855CAA8 is 1.27 times more volatile than Aegon NV ADR. It trades about -0.23 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 643.00 in Aegon NV ADR on September 13, 2024 and sell it today you would lose (11.00) from holding Aegon NV ADR or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
STLA 1711 29 JAN 27 vs. Aegon NV ADR
Performance |
| Timeline |
| STLA 1711 29 |
| Aegon NV ADR |
85855CAA8 and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 85855CAA8 and Aegon NV
The main advantage of trading using opposite 85855CAA8 and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 85855CAA8 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.| 85855CAA8 vs. Funko Inc | 85855CAA8 vs. BRP Inc | 85855CAA8 vs. JD Sports Fashion | 85855CAA8 vs. Cincinnati Financial |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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