Correlation Between Nates Food and Aegon NV

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

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

Diversification Opportunities for Nates Food and Aegon NV

0.38

Correlation Coefficient

Nates Food  Aegon NV

Weak diversification

The 3 months correlation between Nates and Aegon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nates Food Co and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR and Nates Food 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 Nates Food Co 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 ADR has no effect on the direction of Nates Food i.e., Nates Food and Aegon NV go up and down completely randomly.

Pair Corralation between Nates Food and Aegon NV

If you would invest  651.00  in Aegon NV ADR on May 7, 2025 and sell it today you would earn a total of  53.00  from holding Aegon NV ADR or generate 8.14% return on investment over 90 days.

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

Nates Food Co  vs.  Aegon NV ADR

Nates Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nates Food Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Nates Food is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Aegon NV ADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aegon NV ADR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Aegon NV may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Nates Food and Aegon NV

The main advantage of trading using opposite Nates Food and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nates Food 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 Nates Food Co and Aegon NV ADR 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.