Correlation Between Aquagold International and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Fulton Financial 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 Fulton Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Fulton Financial, you can compare the effects of market volatilities on Aquagold International and Fulton Financial 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 Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Fulton Financial.
Diversification Opportunities for Aquagold International and Fulton Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Fulton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton Financial 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 Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of Aquagold International i.e., Aquagold International and Fulton Financial go up and down completely randomly.
Pair Corralation between Aquagold International and Fulton Financial
Given the investment horizon of 90 days Aquagold International is expected to generate 23.61 times more return on investment than Fulton Financial. However, Aquagold International is 23.61 times more volatile than Fulton Financial. It trades about 0.06 of its potential returns per unit of risk. Fulton Financial is currently generating about 0.04 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. Fulton Financial
Performance |
| Timeline |
| Aquagold International |
| Fulton Financial |
Aquagold International and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Fulton Financial
The main advantage of trading using opposite Aquagold International and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Fulton Financial 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Fulton Financial vs. First Commonwealth Financial | Fulton Financial vs. Heritage Commerce Corp | Fulton Financial vs. Northwest Bancshares | Fulton Financial vs. First United |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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