Correlation Between Aquagold International and Costamare
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
Given the investment horizon of 90 days Aquagold International is expected to generate 83.85 times more return on investment than Costamare. However, Aquagold International is 83.85 times more volatile than Costamare. It trades about 0.06 of its potential returns per unit of risk. Costamare is currently generating about 0.07 per unit of risk. If you would invest 25.00 in Aquagold International on August 25, 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 | 99.8% |
| Values | Daily Returns |
Aquagold International vs. Costamare
Performance |
| Timeline |
| Aquagold International |
| Costamare |
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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Costamare vs. Costamare | Costamare vs. Global Ship Lease | Costamare vs. Diana Shipping | Costamare vs. Costamare |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |