Correlation Between Aegon NV and Amazon

Specify exactly 2 symbols:
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 PRP 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

0.0
  Correlation Coefficient

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 PRP 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 PRP 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  17,316  in Amazon Inc on December 30, 2023 and sell it today you would earn a total of  722.00  from holding Amazon Inc or generate 4.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Aegon NV PRP  vs.  Amazon Inc

 Performance 
       Timeline  
Aegon NV PRP 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Aegon NV PRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Aegon NV is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
Amazon Inc 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Amazon displayed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Aegon NV PRP and Amazon Inc 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.
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

CEOs Directory
Screen CEOs from public companies around the world
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Positions Ratings
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
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Commodity Directory
Find actively traded commodities issued by global exchanges
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals