Correlation Between Aquagold International and Barings Active
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Barings Active 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 Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Barings Active Short, you can compare the effects of market volatilities on Aquagold International and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Barings Active.
Diversification Opportunities for Aquagold International and Barings Active
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aquagold and Barings is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short 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 Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Aquagold International i.e., Aquagold International and Barings Active go up and down completely randomly.
Pair Corralation between Aquagold International and Barings Active
Given the investment horizon of 90 days Aquagold International is expected to generate 314.37 times more return on investment than Barings Active. However, Aquagold International is 314.37 times more volatile than Barings Active Short. It trades about 0.05 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.15 per unit of risk. If you would invest 25.00 in Aquagold International on November 27, 2024 and sell it today you would lose (24.98) from holding Aquagold International or give up 99.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Aquagold International vs. Barings Active Short
Performance |
| Timeline |
| Aquagold International |
| Barings Active Short |
Aquagold International and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Barings Active
The main advantage of trading using opposite Aquagold International and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Barings Active vs. Sprott Gold Equity | Barings Active vs. Gamco Global Gold | Barings Active vs. Precious Metals And | Barings Active vs. Ocm Mutual Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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