Correlation Between American International and Aegon NV
Can any of the company-specific risk be diversified away by investing in both American International and Aegon NV 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 American International and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American International Group and Aegon NV ADR, you can compare the effects of market volatilities on American International and Aegon NV 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 American International with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of American International and Aegon NV.
Diversification Opportunities for American International and Aegon NV
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and Aegon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding American International Group and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR and American International 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 American International Group are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV ADR has no effect on the direction of American International i.e., American International and Aegon NV go up and down completely randomly.
Pair Corralation between American International and Aegon NV
Considering the 90-day investment horizon American International Group is expected to generate 0.49 times more return on investment than Aegon NV. However, American International Group is 2.06 times less risky than Aegon NV. It trades about 0.54 of its potential returns per unit of risk. Aegon NV ADR is currently generating about 0.14 per unit of risk. If you would invest 7,161 in American International Group on December 29, 2023 and sell it today you would earn a total of 673.00 from holding American International Group or generate 9.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
American International Group vs. Aegon NV ADR
Performance |
Timeline |
American International |
Aegon NV ADR |
American International and Aegon NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American International and Aegon NV
The main advantage of trading using opposite American International and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American International position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.American International vs. Athene Holding | American International vs. Athene Holding | American International vs. Athene Holding | American International vs. Athene Holding |
Aegon NV vs. Athene Holding | Aegon NV vs. Athene Holding | Aegon NV vs. Athene Holding | Aegon NV vs. Athene Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |