Correlation Between Ageas SANV and Warehouses

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

By analyzing existing cross correlation between ageas SANV and Warehouses de Pauw, you can compare the effects of market volatilities on Ageas SANV and Warehouses 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 Ageas SANV with a short position of Warehouses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Warehouses.

Diversification Opportunities for Ageas SANV and Warehouses

-0.5

Correlation Coefficient

Ageas SANV  Warehouses

Very good diversification

The 3 months correlation between Ageas and Warehouses is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Warehouses de Pauw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouses de Pauw and Ageas SANV 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 ageas SANV are associated (or correlated) with Warehouses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouses de Pauw has no effect on the direction of Ageas SANV i.e., Ageas SANV and Warehouses go up and down completely randomly.

Pair Corralation between Ageas SANV and Warehouses

Assuming the 90 days trading horizon ageas SANV is expected to generate 0.57 times more return on investment than Warehouses. However, ageas SANV is 1.75 times less risky than Warehouses. It trades about 0.09 of its potential returns per unit of risk. Warehouses de Pauw is currently generating about -0.22 per unit of risk. If you would invest  4,477  in ageas SANV on September 12, 2024 and sell it today you would earn a total of  207.00  from holding ageas SANV or generate 4.62% return on investment over 90 days.

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

ageas SANV  vs.  Warehouses de Pauw

ageas SANV

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ageas SANV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Ageas SANV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Warehouses de Pauw

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Warehouses de Pauw has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Ageas SANV and Warehouses

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

The idea behind ageas SANV and Warehouses de Pauw 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.