Correlation Between GIMV NV and Ageas SANV

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

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

Diversification Opportunities for GIMV NV and Ageas SANV

-0.38

Correlation Coefficient

GIMV NV  Ageas SANV

Very good diversification

The 3 months correlation between GIMV and Ageas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and GIMV 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 GIMV NV are associated (or correlated) with Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of GIMV NV i.e., GIMV NV and Ageas SANV go up and down completely randomly.

Pair Corralation between GIMV NV and Ageas SANV

Assuming the 90 days trading horizon GIMV NV is expected to under-perform the Ageas SANV. In addition to that, GIMV NV is 1.54 times more volatile than ageas SANV. It trades about -0.08 of its total potential returns per unit of risk. ageas SANV is currently generating about 0.05 per unit of volatility. If you would invest  4,587  in ageas SANV on September 14, 2024 and sell it today you would earn a total of  121.00  from holding ageas SANV or generate 2.64% return on investment over 90 days.

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

GIMV NV  vs.  ageas SANV

GIMV NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GIMV NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GIMV NV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

ageas SANV

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ageas SANV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Ageas SANV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GIMV NV and Ageas SANV

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

The idea behind GIMV NV and ageas SANV 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.