Correlation Between Aegon NV and EQV Ventures

Can any of the company-specific risk be diversified away by investing in both Aegon NV and EQV Ventures 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 Aegon NV and EQV Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aegon NV ADR and EQV Ventures Acquisition, you can compare the effects of market volatilities on Aegon NV and EQV Ventures 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 Aegon NV with a short position of EQV Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and EQV Ventures.

Diversification Opportunities for Aegon NV and EQV Ventures

-0.23

Correlation Coefficient

Aegon NV  EQV Ventures

Very good diversification

The 3 months correlation between Aegon and EQV is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and EQV Ventures Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQV Ventures Acquisition and Aegon NV 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 Aegon NV ADR are associated (or correlated) with EQV Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQV Ventures Acquisition has no effect on the direction of Aegon NV i.e., Aegon NV and EQV Ventures go up and down completely randomly.

Pair Corralation between Aegon NV and EQV Ventures

Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the EQV Ventures. In addition to that, Aegon NV is 17.88 times more volatile than EQV Ventures Acquisition. It trades about -0.07 of its total potential returns per unit of risk. EQV Ventures Acquisition is currently generating about 0.04 per unit of volatility. If you would invest  992.00  in EQV Ventures Acquisition on September 19, 2024 and sell it today you would earn a total of  2.00  from holding EQV Ventures Acquisition or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Aegon NV ADR  vs.  EQV Ventures Acquisition

Aegon NV ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegon NV ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

EQV Ventures Acquisition

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EQV Ventures Acquisition are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, EQV Ventures is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Aegon NV and EQV Ventures

The main advantage of trading using opposite Aegon NV and EQV Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, EQV Ventures 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 EQV Ventures will offset losses from the drop in EQV Ventures' long position.

The idea behind Aegon NV ADR and EQV Ventures Acquisition 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.