Correlation Between Ageas SANV and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and NYSE Composite 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 SANV and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and NYSE Composite, you can compare the effects of market volatilities on Ageas SANV and NYSE Composite 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 SANV with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and NYSE Composite.
Diversification Opportunities for Ageas SANV and NYSE Composite
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ageas and NYSE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Ageas SANV 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Ageas SANV i.e., Ageas SANV and NYSE Composite go up and down completely randomly.
Pair Corralation between Ageas SANV and NYSE Composite
Assuming the 90 days trading horizon ageas SANV is expected to generate 1.51 times more return on investment than NYSE Composite. However, Ageas SANV is 1.51 times more volatile than NYSE Composite. It trades about 0.03 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.14 per unit of risk. If you would invest 4,292 in ageas SANV on February 2, 2024 and sell it today you would earn a total of 22.00 from holding ageas SANV or generate 0.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
ageas SANV vs. NYSE Composite
Performance |
Timeline |
Ageas SANV and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
ageas SANV
Pair trading matchups for Ageas SANV
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Ageas SANV and NYSE Composite
The main advantage of trading using opposite Ageas SANV and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
NYSE Composite vs. NI Holdings | NYSE Composite vs. Mattel Inc | NYSE Composite vs. Parker Hannifin | NYSE Composite vs. Artisan Partners Asset |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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