Correlation Between Aquagold International and STRATS SM
Can any of the company-specific risk be diversified away by investing in both Aquagold International and STRATS SM 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 STRATS SM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and STRATS SM Trust, you can compare the effects of market volatilities on Aquagold International and STRATS SM 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 STRATS SM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and STRATS SM.
Diversification Opportunities for Aquagold International and STRATS SM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and STRATS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and STRATS SM Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATS SM Trust 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 STRATS SM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATS SM Trust has no effect on the direction of Aquagold International i.e., Aquagold International and STRATS SM go up and down completely randomly.
Pair Corralation between Aquagold International and STRATS SM
Given the investment horizon of 90 days Aquagold International is expected to under-perform the STRATS SM. In addition to that, Aquagold International is 4.35 times more volatile than STRATS SM Trust. It trades about -0.03 of its total potential returns per unit of risk. STRATS SM Trust is currently generating about 0.04 per unit of volatility. If you would invest 2,301 in STRATS SM Trust on September 14, 2024 and sell it today you would earn a total of 199.00 from holding STRATS SM Trust or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 65.3% |
| Values | Daily Returns |
Aquagold International vs. STRATS SM Trust
Performance |
| Timeline |
| Aquagold International |
| STRATS SM Trust |
Aquagold International and STRATS SM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and STRATS SM
The main advantage of trading using opposite Aquagold International and STRATS SM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, STRATS SM 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 STRATS SM will offset losses from the drop in STRATS SM's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| STRATS SM vs. B Riley Financial | STRATS SM vs. DTE Energy Co | STRATS SM vs. Aquagold International | STRATS SM vs. Morningstar Unconstrained Allocation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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