Correlation Between Aegon NV and Fiserv,

Can any of the company-specific risk be diversified away by investing in both Aegon NV and Fiserv, 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 Fiserv, 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 Fiserv,, you can compare the effects of market volatilities on Aegon NV and Fiserv, 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 Fiserv,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Fiserv,.

Diversification Opportunities for Aegon NV and Fiserv,

0.1

Correlation Coefficient

Aegon NV  Fiserv,

Average diversification

The 3 months correlation between Aegon and Fiserv, is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Fiserv, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv, 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 Fiserv,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv, has no effect on the direction of Aegon NV i.e., Aegon NV and Fiserv, go up and down completely randomly.

Pair Corralation between Aegon NV and Fiserv,

Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the Fiserv,. In addition to that, Aegon NV is 1.15 times more volatile than Fiserv,. It trades about -0.1 of its total potential returns per unit of risk. Fiserv, is currently generating about 0.05 per unit of volatility. If you would invest  20,302  in Fiserv, on October 6, 2024 and sell it today you would earn a total of  555.00  from holding Fiserv, or generate 2.73% return on investment over 90 days.

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

Aegon NV ADR  vs.  Fiserv,

Aegon NV ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegon NV ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aegon NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fiserv,

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady forward indicators, Fiserv, demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aegon NV and Fiserv,

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

The idea behind Aegon NV ADR and Fiserv, 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..