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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Barings is 0.0. 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 under-perform the Barings Active. In addition to that, Aquagold International is 36.66 times more volatile than Barings Active Short. It trades about -0.03 of its total potential returns per unit of risk. Barings Active Short is currently generating about 0.25 per unit of volatility. If you would invest 836.00 in Barings Active Short on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Barings Active Short or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| 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. Barings Active Short | Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Global Floating |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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