Correlation Between Fastned BV and Aegon NV

Can any of the company-specific risk be diversified away by investing in both Fastned BV 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 Fastned BV and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fastned BV and Aegon NV, you can compare the effects of market volatilities on Fastned BV 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 Fastned BV with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastned BV and Aegon NV.

Diversification Opportunities for Fastned BV and Aegon NV

0.0

Correlation Coefficient

Fastned BV  Aegon NV

Pay attention - limited upside

The 3 months correlation between Fastned and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fastned BV and Aegon NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV and Fastned BV 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 Fastned BV 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 has no effect on the direction of Fastned BV i.e., Fastned BV and Aegon NV go up and down completely randomly.

Pair Corralation between Fastned BV and Aegon NV

If you would invest  540.00  in Aegon NV on February 8, 2024 and sell it today you would earn a total of  67.00  from holding Aegon NV or generate 12.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Fastned BV  vs.  Aegon NV

Fastned BV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fastned BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fastned BV is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Aegon NV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aegon NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Aegon NV may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Fastned BV and Aegon NV

The main advantage of trading using opposite Fastned BV and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastned BV 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.

The idea behind Fastned BV and Aegon NV 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.