Correlation Between Aquagold International and Costamare

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Can any of the company-specific risk be diversified away by investing in both Aquagold International and Costamare 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 Costamare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Costamare, you can compare the effects of market volatilities on Aquagold International and Costamare 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 Costamare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Costamare.

Diversification Opportunities for Aquagold International and Costamare

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aquagold and Costamare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare 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 Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of Aquagold International i.e., Aquagold International and Costamare go up and down completely randomly.

Pair Corralation between Aquagold International and Costamare

If you would invest  0.60  in Aquagold International on August 29, 2024 and sell it today you would earn a total of  0.00  from holding Aquagold International or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aquagold International  vs.  Costamare

 Performance 
       Timeline  
Aquagold International 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Costamare 

Risk-Adjusted Performance

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Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Costamare are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Costamare is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Aquagold International and Costamare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aquagold International and Costamare

The main advantage of trading using opposite Aquagold International and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.
The idea behind Aquagold International and Costamare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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