Correlation Between Aegon NV and Megaworld Corp
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Megaworld Corp 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 Megaworld Corp 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 Megaworld Corp ADR, you can compare the effects of market volatilities on Aegon NV and Megaworld Corp 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 Megaworld Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Megaworld Corp.
Diversification Opportunities for Aegon NV and Megaworld Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegon and Megaworld is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV PRP and Megaworld Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megaworld Corp ADR 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 Megaworld Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megaworld Corp ADR has no effect on the direction of Aegon NV i.e., Aegon NV and Megaworld Corp go up and down completely randomly.
Pair Corralation between Aegon NV and Megaworld Corp
If you would invest (100.00) in Aegon NV PRP on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Aegon NV PRP or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aegon NV PRP vs. Megaworld Corp ADR
Performance |
| Timeline |
| Aegon NV PRP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Megaworld Corp ADR |
Aegon NV and Megaworld Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Megaworld Corp
The main advantage of trading using opposite Aegon NV and Megaworld Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Megaworld Corp 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 Megaworld Corp will offset losses from the drop in Megaworld Corp's long position.| Aegon NV vs. HNI Corp | Aegon NV vs. Marie Brizard Wine | Aegon NV vs. 24SevenOffice Group AB | Aegon NV vs. Skechers USA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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