Correlation Between Aegon Funding and Weyco

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Can any of the company-specific risk be diversified away by investing in both Aegon Funding and Weyco 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 Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon Funding and Weyco Group, you can compare the effects of market volatilities on Aegon Funding and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon Funding and Weyco.

Diversification Opportunities for Aegon Funding and Weyco

AegonWeycoDiversified AwayAegonWeycoDiversified Away100%
-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Aegon and Weyco is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aegon Funding and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Aegon Funding i.e., Aegon Funding and Weyco go up and down completely randomly.

Pair Corralation between Aegon Funding and Weyco

Given the investment horizon of 90 days Aegon Funding is expected to under-perform the Weyco. But the stock apears to be less risky and, when comparing its historical volatility, Aegon Funding is 3.16 times less risky than Weyco. The stock trades about -0.07 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,429  in Weyco Group on October 21, 2024 and sell it today you would earn a total of  99.00  from holding Weyco Group or generate 2.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aegon Funding  vs.  Weyco Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-505101520
JavaScript chart by amCharts 3.21.15AEFC WEYS
       Timeline  
Aegon Funding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aegon Funding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Aegon Funding is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2020.52121.522
Weyco Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Weyco is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3334353637383940

Aegon Funding and Weyco Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.69-1.28-0.87-0.46-0.07010.240.651.061.471.88 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15AEFC WEYS
       Returns  

Pair Trading with Aegon Funding and Weyco

The main advantage of trading using opposite Aegon Funding and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon Funding position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco's long position.
The idea behind Aegon Funding and Weyco Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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