Correlation Between Aegon NV and BERKSHIRE HATHAWAY
Can any of the company-specific risk be diversified away by investing in both Aegon NV and BERKSHIRE HATHAWAY 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 BERKSHIRE HATHAWAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV ADR and BERKSHIRE HATHAWAY INC, you can compare the effects of market volatilities on Aegon NV and BERKSHIRE HATHAWAY 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 BERKSHIRE HATHAWAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and BERKSHIRE HATHAWAY.
Diversification Opportunities for Aegon NV and BERKSHIRE HATHAWAY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegon and BERKSHIRE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and BERKSHIRE HATHAWAY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY 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 ADR are associated (or correlated) with BERKSHIRE HATHAWAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BERKSHIRE HATHAWAY INC has no effect on the direction of Aegon NV i.e., Aegon NV and BERKSHIRE HATHAWAY go up and down completely randomly.
Pair Corralation between Aegon NV and BERKSHIRE HATHAWAY
If you would invest 558.00 in Aegon NV ADR on January 31, 2024 and sell it today you would earn a total of 67.00 from holding Aegon NV ADR or generate 12.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aegon NV ADR vs. BERKSHIRE HATHAWAY INC
Performance |
Timeline |
Aegon NV ADR |
BERKSHIRE HATHAWAY INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aegon NV and BERKSHIRE HATHAWAY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegon NV and BERKSHIRE HATHAWAY
The main advantage of trading using opposite Aegon NV and BERKSHIRE HATHAWAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, BERKSHIRE HATHAWAY 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 BERKSHIRE HATHAWAY will offset losses from the drop in BERKSHIRE HATHAWAY's long position.Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
BERKSHIRE HATHAWAY vs. Enstar Group Limited | BERKSHIRE HATHAWAY vs. Fidelis Insurance Holdings | BERKSHIRE HATHAWAY vs. Aegon NV ADR | BERKSHIRE HATHAWAY vs. American International Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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