Correlation Between First Ship and Aegon NV
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Aegon NV ADR, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Aegon NV.
Diversification Opportunities for First Ship and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Aegon NV go up and down completely randomly.
Pair Corralation between First Ship and Aegon NV
If you would invest 584.00 in Aegon NV ADR on December 27, 2024 and sell it today you would earn a total of 90.00 from holding Aegon NV ADR or generate 15.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
First Ship Lease vs. Aegon NV ADR
Performance |
Timeline |
First Ship Lease |
Aegon NV ADR |
First Ship and Aegon NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Ship and Aegon NV
The main advantage of trading using opposite First Ship and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.First Ship vs. Hillman Solutions Corp | First Ship vs. Sonos Inc | First Ship vs. JD Sports Fashion | First Ship vs. Procter Gamble |
Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |