Correlation Between Aegon NV and SPDR Bloomberg

Can any of the company-specific risk be diversified away by investing in both Aegon NV and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg 1 3, you can compare the effects of market volatilities on Aegon NV and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and SPDR Bloomberg.

Diversification Opportunities for Aegon NV and SPDR Bloomberg

0.0

Correlation Coefficient

Aegon NV  SPDR Bloomberg

Pay attention - limited upside

The 3 months correlation between Aegon and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV PERP and SPDR Bloomberg 1 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg 1 has no effect on the direction of Aegon NV i.e., Aegon NV and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between Aegon NV and SPDR Bloomberg

If you would invest  9,132  in SPDR Bloomberg 1 3 on January 25, 2024 and sell it today you would earn a total of  39.00  from holding SPDR Bloomberg 1 3 or generate 0.43% 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.  SPDR Bloomberg 1 3

Aegon NV PERP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegon NV PERP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Aegon NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SPDR Bloomberg 1

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg 1 3 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Aegon NV and SPDR Bloomberg

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

The idea behind Aegon NV PERP and SPDR Bloomberg 1 3 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.