Correlation Between AquaBounty Technologies and Golden Agri
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies and Golden Agri 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 AquaBounty Technologies and Golden Agri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Golden Agri Resources, you can compare the effects of market volatilities on AquaBounty Technologies and Golden Agri 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 AquaBounty Technologies with a short position of Golden Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Golden Agri.
Diversification Opportunities for AquaBounty Technologies and Golden Agri
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AquaBounty and Golden is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources and AquaBounty Technologies 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 AquaBounty Technologies are associated (or correlated) with Golden Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of AquaBounty Technologies i.e., AquaBounty Technologies and Golden Agri go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Golden Agri
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Golden Agri. In addition to that, AquaBounty Technologies is 1.32 times more volatile than Golden Agri Resources. It trades about -0.07 of its total potential returns per unit of risk. Golden Agri Resources is currently generating about 0.03 per unit of volatility. If you would invest 18.00 in Golden Agri Resources on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Golden Agri Resources or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 55.98% |
| Values | Daily Returns |
AquaBounty Technologies vs. Golden Agri Resources
Performance |
| Timeline |
| AquaBounty Technologies |
| Golden Agri Resources |
AquaBounty Technologies and Golden Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Golden Agri
The main advantage of trading using opposite AquaBounty Technologies and Golden Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies position performs unexpectedly, Golden Agri 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 Golden Agri will offset losses from the drop in Golden Agri's long position.| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. Forafric Global PLC | AquaBounty Technologies vs. Forafric Global PLC |
| Golden Agri vs. Avi Ltd ADR | Golden Agri vs. Altavoz Entertainment | Golden Agri vs. Aryzta AG PK | Golden Agri vs. Artisan Consumer Goods |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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