Correlation Between Aquagold International and Great Elm
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Great Elm Group, you can compare the effects of market volatilities on Aquagold International and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Great Elm.
Diversification Opportunities for Aquagold International and Great Elm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Great Elm Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Group 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Group has no effect on the direction of Aquagold International i.e., Aquagold International and Great Elm go up and down completely randomly.
Pair Corralation between Aquagold International and Great Elm
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Great Elm. In addition to that, Aquagold International is 4.27 times more volatile than Great Elm Group. It trades about -0.03 of its total potential returns per unit of risk. Great Elm Group is currently generating about 0.06 per unit of volatility. If you would invest 1,997 in Great Elm Group on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Great Elm Group or generate 20.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Great Elm Group
Performance |
| Timeline |
| Aquagold International |
| Great Elm Group |
Aquagold International and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Great Elm
The main advantage of trading using opposite Aquagold International and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Great Elm vs. Atlanticus Holdings | Great Elm vs. Great Elm Capital | Great Elm vs. Aquagold International | Great Elm 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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