Correlation Between Aquagold International and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Duke Energy 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 Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Duke Energy, you can compare the effects of market volatilities on Aquagold International and Duke Energy 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 Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Duke Energy.
Diversification Opportunities for Aquagold International and Duke Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Duke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy 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 Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Aquagold International i.e., Aquagold International and Duke Energy go up and down completely randomly.
Pair Corralation between Aquagold International and Duke Energy
Given the investment horizon of 90 days Aquagold International is expected to generate 87.94 times more return on investment than Duke Energy. However, Aquagold International is 87.94 times more volatile than Duke Energy. It trades about 0.06 of its potential returns per unit of risk. Duke Energy is currently generating about 0.04 per unit of risk. If you would invest 17.00 in Aquagold International on August 31, 2024 and sell it today you would lose (16.40) from holding Aquagold International or give up 96.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Duke Energy
Performance |
| Timeline |
| Aquagold International |
| Duke Energy |
Aquagold International and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Duke Energy
The main advantage of trading using opposite Aquagold International and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Duke Energy vs. Centrais Eltricas Brasileiras | Duke Energy vs. Nextera Energy | Duke Energy vs. Consumers Energy | Duke Energy vs. CMS Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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