Correlation Between Aquagold International and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Atlanticus Holdings 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 Aquagold International and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Atlanticus Holdings, you can compare the effects of market volatilities on Aquagold International and Atlanticus Holdings 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 Aquagold International with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Atlanticus Holdings.
Diversification Opportunities for Aquagold International and Atlanticus Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aquagold and Atlanticus is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings and Aquagold International 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 Aquagold International are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings has no effect on the direction of Aquagold International i.e., Aquagold International and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Aquagold International and Atlanticus Holdings
Given the investment horizon of 90 days Aquagold International is expected to generate 19.73 times more return on investment than Atlanticus Holdings. However, Aquagold International is 19.73 times more volatile than Atlanticus Holdings. It trades about 0.03 of its potential returns per unit of risk. Atlanticus Holdings is currently generating about 0.04 per unit of risk. If you would invest 0.20 in Aquagold International on January 17, 2025 and sell it today you would lose (0.18) from holding Aquagold International or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Aquagold International vs. Atlanticus Holdings
Performance |
| Timeline |
| Aquagold International |
| Atlanticus Holdings |
Aquagold International and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Atlanticus Holdings
The main advantage of trading using opposite Aquagold International and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Atlanticus Holdings vs. Truist Financial | Atlanticus Holdings vs. Truist Financial | Atlanticus Holdings vs. Truist Financial | Atlanticus Holdings vs. State Street |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |