Correlation Between Aquagold International and GreenPower
Can any of the company-specific risk be diversified away by investing in both Aquagold International and GreenPower 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 GreenPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and GreenPower Motor, you can compare the effects of market volatilities on Aquagold International and GreenPower 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 GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and GreenPower.
Diversification Opportunities for Aquagold International and GreenPower
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and GreenPower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor 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 GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of Aquagold International i.e., Aquagold International and GreenPower go up and down completely randomly.
Pair Corralation between Aquagold International and GreenPower
Given the investment horizon of 90 days Aquagold International is expected to generate 8.9 times more return on investment than GreenPower. However, Aquagold International is 8.9 times more volatile than GreenPower Motor. It trades about 0.06 of its potential returns per unit of risk. GreenPower Motor is currently generating about 0.0 per unit of risk. If you would invest 21.00 in Aquagold International on September 14, 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 | 100.0% |
| Values | Daily Returns |
Aquagold International vs. GreenPower Motor
Performance |
| Timeline |
| Aquagold International |
| GreenPower Motor |
Aquagold International and GreenPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and GreenPower
The main advantage of trading using opposite Aquagold International and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| GreenPower vs. Aquagold International | GreenPower vs. Thrivent High Yield | GreenPower vs. Morningstar Unconstrained Allocation | GreenPower vs. Via Renewables |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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