Correlation Between Aegon Funding and Paysafe

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

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

Diversification Opportunities for Aegon Funding and Paysafe

0.49

Correlation Coefficient

Aegon Funding  Paysafe

Very weak diversification

The 3 months correlation between Aegon and Paysafe is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aegon Funding and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe and Aegon Funding 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 Funding are associated (or correlated) with Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Aegon Funding i.e., Aegon Funding and Paysafe go up and down completely randomly.

Pair Corralation between Aegon Funding and Paysafe

Given the investment horizon of 90 days Aegon Funding is expected to generate 0.22 times more return on investment than Paysafe. However, Aegon Funding is 4.53 times less risky than Paysafe. It trades about 0.02 of its potential returns per unit of risk. Paysafe is currently generating about -0.11 per unit of risk. If you would invest  1,990  in Aegon Funding on May 6, 2025 and sell it today you would earn a total of  17.00  from holding Aegon Funding or generate 0.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aegon Funding  vs.  Paysafe

Aegon Funding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aegon Funding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Aegon Funding is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Paysafe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paysafe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Aegon Funding and Paysafe

The main advantage of trading using opposite Aegon Funding and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon Funding position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.

The idea behind Aegon Funding and Paysafe 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.