Correlation Between Aquagold International and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Alibaba Group 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 Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Alibaba Group Holding, you can compare the effects of market volatilities on Aquagold International and Alibaba Group 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 Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Alibaba Group.
Diversification Opportunities for Aquagold International and Alibaba Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Alibaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding 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 Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Aquagold International i.e., Aquagold International and Alibaba Group go up and down completely randomly.
Pair Corralation between Aquagold International and Alibaba Group
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Alibaba Group. In addition to that, Aquagold International is 1.28 times more volatile than Alibaba Group Holding. It trades about -0.02 of its total potential returns per unit of risk. Alibaba Group Holding is currently generating about 0.02 per unit of volatility. If you would invest 1,081 in Alibaba Group Holding on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Alibaba Group Holding or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Alibaba Group Holding
Performance |
| Timeline |
| Aquagold International |
| Alibaba Group Holding |
Aquagold International and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Alibaba Group
The main advantage of trading using opposite Aquagold International and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Alibaba Group vs. Meituan ADR | Alibaba Group vs. Meituan | Alibaba Group vs. Qurate Retail Series | Alibaba Group vs. ThredUp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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