Correlation Between Aquagold International and Farmers National
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Farmers National 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 Farmers National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Farmers National Banc, you can compare the effects of market volatilities on Aquagold International and Farmers National 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 Farmers National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Farmers National.
Diversification Opportunities for Aquagold International and Farmers National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Farmers National Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers National Banc 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 Farmers National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers National Banc has no effect on the direction of Aquagold International i.e., Aquagold International and Farmers National go up and down completely randomly.
Pair Corralation between Aquagold International and Farmers National
Given the investment horizon of 90 days Aquagold International is expected to generate 24.86 times more return on investment than Farmers National. However, Aquagold International is 24.86 times more volatile than Farmers National Banc. It trades about 0.06 of its potential returns per unit of risk. Farmers National Banc is currently generating about 0.03 per unit of risk. If you would invest 21.00 in Aquagold International on September 12, 2024 and sell it today you would lose (20.40) from holding Aquagold International or give up 97.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aquagold International vs. Farmers National Banc
Performance |
| Timeline |
| Aquagold International |
| Farmers National Banc |
Aquagold International and Farmers National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Farmers National
The main advantage of trading using opposite Aquagold International and Farmers National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Farmers National 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 Farmers National will offset losses from the drop in Farmers National's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Farmers National vs. JPMorgan Chase Co | Farmers National vs. Citigroup | Farmers National vs. Wells Fargo | Farmers National vs. Toronto Dominion Bank |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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