Correlation Between Ageas SANV and AGFA Gevaert
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and AGFA Gevaert 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 AGFA Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and AGFA Gevaert NV, you can compare the effects of market volatilities on Ageas SANV and AGFA Gevaert 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 AGFA Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and AGFA Gevaert.
Diversification Opportunities for Ageas SANV and AGFA Gevaert
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ageas and AGFA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and AGFA Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFA Gevaert NV 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 AGFA Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFA Gevaert NV has no effect on the direction of Ageas SANV i.e., Ageas SANV and AGFA Gevaert go up and down completely randomly.
Pair Corralation between Ageas SANV and AGFA Gevaert
Assuming the 90 days trading horizon Ageas SANV is expected to generate 3.04 times less return on investment than AGFA Gevaert. But when comparing it to its historical volatility, ageas SANV is 2.04 times less risky than AGFA Gevaert. It trades about 0.22 of its potential returns per unit of risk. AGFA Gevaert NV is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 120.00 in AGFA Gevaert NV on February 14, 2024 and sell it today you would earn a total of 16.00 from holding AGFA Gevaert NV or generate 13.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ageas SANV vs. AGFA Gevaert NV
Performance |
Timeline |
ageas SANV |
AGFA Gevaert NV |
Ageas SANV and AGFA Gevaert Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ageas SANV and AGFA Gevaert
The main advantage of trading using opposite Ageas SANV and AGFA Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, AGFA Gevaert 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 AGFA Gevaert will offset losses from the drop in AGFA Gevaert'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 |
AGFA Gevaert vs. NV Bekaert SA | AGFA Gevaert vs. Barco NV | AGFA Gevaert vs. EVS Broadcast Equipment | AGFA Gevaert vs. Nyrstar NV |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |