Correlation Between Aquagold International and Global Medical
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Global Medical 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 Global Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Global Medical REIT, you can compare the effects of market volatilities on Aquagold International and Global Medical 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 Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Global Medical.
Diversification Opportunities for Aquagold International and Global Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT 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 Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of Aquagold International i.e., Aquagold International and Global Medical go up and down completely randomly.
Pair Corralation between Aquagold International and Global Medical
Given the investment horizon of 90 days Aquagold International is expected to generate 76.57 times more return on investment than Global Medical. However, Aquagold International is 76.57 times more volatile than Global Medical REIT. It trades about 0.06 of its potential returns per unit of risk. Global Medical REIT is currently generating about 0.05 per unit of risk. If you would invest 17.00 in Aquagold International on August 31, 2024 and sell it today you would lose (16.40) from holding Aquagold International or give up 96.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Global Medical REIT
Performance |
| Timeline |
| Aquagold International |
| Global Medical REIT |
Aquagold International and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Global Medical
The main advantage of trading using opposite Aquagold International and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Global Medical 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 Global Medical will offset losses from the drop in Global Medical's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Global Medical vs. Global Medical REIT | Global Medical vs. Community Healthcare Trust | Global Medical vs. National Health Investors | Global Medical vs. Healthcare Realty Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |