Correlation Between Aquagold International and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Franklin Credit 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 Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Franklin Credit Management, you can compare the effects of market volatilities on Aquagold International and Franklin Credit 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 Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Franklin Credit.
Diversification Opportunities for Aquagold International and Franklin Credit
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aquagold and Franklin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana 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 Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Aquagold International i.e., Aquagold International and Franklin Credit go up and down completely randomly.
Pair Corralation between Aquagold International and Franklin Credit
Given the investment horizon of 90 days Aquagold International is expected to generate 0.81 times more return on investment than Franklin Credit. However, Aquagold International is 1.23 times less risky than Franklin Credit. It trades about -0.21 of its potential returns per unit of risk. Franklin Credit Management is currently generating about -0.22 per unit of risk. If you would invest 0.04 in Aquagold International on November 29, 2024 and sell it today you would lose (0.02) from holding Aquagold International or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. Franklin Credit Management
Performance |
| Timeline |
| Aquagold International |
| Franklin Credit Mana |
Aquagold International and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Franklin Credit
The main advantage of trading using opposite Aquagold International and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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