Correlation Between Aquagold International and Barnes
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Barnes 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 Barnes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Barnes Group, you can compare the effects of market volatilities on Aquagold International and Barnes 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 Barnes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Barnes.
Diversification Opportunities for Aquagold International and Barnes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Barnes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group 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 Barnes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Group has no effect on the direction of Aquagold International i.e., Aquagold International and Barnes go up and down completely randomly.
Pair Corralation between Aquagold International and Barnes
Given the investment horizon of 90 days Aquagold International is expected to generate 20.94 times more return on investment than Barnes. However, Aquagold International is 20.94 times more volatile than Barnes Group. It trades about 0.06 of its potential returns per unit of risk. Barnes Group is currently generating about 0.03 per unit of risk. If you would invest 25.00 in Aquagold International on August 30, 2024 and sell it today you would lose (24.40) from holding Aquagold International or give up 97.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Barnes Group
Performance |
| Timeline |
| Aquagold International |
| Barnes Group |
Aquagold International and Barnes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Barnes
The main advantage of trading using opposite Aquagold International and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Barnes 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 Barnes will offset losses from the drop in Barnes' long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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