Correlation Between Aegon NV and Amazon
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Amazon 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 Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV PERP and Amazon Inc, you can compare the effects of market volatilities on Aegon NV and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Amazon.
Diversification Opportunities for Aegon NV and Amazon
Pay attention - limited upside
The 3 months correlation between Aegon and Amazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV PERP and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 PERP are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Aegon NV i.e., Aegon NV and Amazon go up and down completely randomly.
Pair Corralation between Aegon NV and Amazon
If you would invest 16,708 in Amazon Inc on January 20, 2024 and sell it today you would earn a total of 1,214 from holding Amazon Inc or generate 7.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aegon NV PERP vs. Amazon Inc
Performance |
Timeline |
Aegon NV PERP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amazon Inc |
Aegon NV and Amazon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegon NV and Amazon
The main advantage of trading using opposite Aegon NV and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.Aegon NV vs. InFintT Acquisition Corp | Aegon NV vs. WT Offshore | Aegon NV vs. Inflection Point Acquisition | Aegon NV vs. Iris Acquisition Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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