Correlation Between Ageas SA/NV and Fundamental Global

Can any of the company-specific risk be diversified away by investing in both Ageas SA/NV and Fundamental Global 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 Ageas SA/NV and Fundamental Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ageas SANV and Fundamental Global, you can compare the effects of market volatilities on Ageas SA/NV and Fundamental Global 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 Ageas SA/NV with a short position of Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SA/NV and Fundamental Global.

Diversification Opportunities for Ageas SA/NV and Fundamental Global

-0.48

Correlation Coefficient

Ageas SA/NV  Fundamental Global

Very good diversification

The 3 months correlation between Ageas and Fundamental is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global and Ageas SA/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 ageas SANV are associated (or correlated) with Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of Ageas SA/NV i.e., Ageas SA/NV and Fundamental Global go up and down completely randomly.

Pair Corralation between Ageas SA/NV and Fundamental Global

Assuming the 90 days horizon ageas SANV is expected to under-perform the Fundamental Global. But the pink sheet apears to be less risky and, when comparing its historical volatility, ageas SANV is 2.65 times less risky than Fundamental Global. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Fundamental Global is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,529  in Fundamental Global on September 2, 2024 and sell it today you would earn a total of  271.00  from holding Fundamental Global or generate 17.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ageas SANV  vs.  Fundamental Global

Ageas SA/NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ageas SANV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ageas SA/NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fundamental Global

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fundamental Global are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Fundamental Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ageas SA/NV and Fundamental Global

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

The idea behind ageas SANV and Fundamental Global 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.