Correlation Between Aquagold International and First Bank
Can any of the company-specific risk be diversified away by investing in both Aquagold International and First Bank 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 First Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and First Bank, you can compare the effects of market volatilities on Aquagold International and First Bank 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 First Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and First Bank.
Diversification Opportunities for Aquagold International and First Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and First Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bank 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 First Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bank has no effect on the direction of Aquagold International i.e., Aquagold International and First Bank go up and down completely randomly.
Pair Corralation between Aquagold International and First Bank
If you would invest 1,381 in First Bank on September 4, 2024 and sell it today you would earn a total of 119.00 from holding First Bank or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aquagold International vs. First Bank
Performance |
| Timeline |
| Aquagold International |
| First Bank |
Aquagold International and First Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and First Bank
The main advantage of trading using opposite Aquagold International and First Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, First Bank 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 First Bank will offset losses from the drop in First Bank's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| First Bank vs. International Bancshares | First Bank vs. Finward Bancorp | First Bank vs. Aquagold International | First Bank vs. Thrivent High Yield |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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