Correlation Between Aquagold International and Granite Real
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Granite Real 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 Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Granite Real Estate, you can compare the effects of market volatilities on Aquagold International and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Granite Real.
Diversification Opportunities for Aquagold International and Granite Real
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Granite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Aquagold International i.e., Aquagold International and Granite Real go up and down completely randomly.
Pair Corralation between Aquagold International and Granite Real
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Granite Real. In addition to that, Aquagold International is 2.47 times more volatile than Granite Real Estate. It trades about -0.03 of its total potential returns per unit of risk. Granite Real Estate is currently generating about 0.0 per unit of volatility. If you would invest 5,591 in Granite Real Estate on September 14, 2024 and sell it today you would lose (416.00) from holding Granite Real Estate or give up 7.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Aquagold International vs. Granite Real Estate
Performance |
| Timeline |
| Aquagold International |
| Granite Real Estate |
Aquagold International and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Granite Real
The main advantage of trading using opposite Aquagold International and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Granite Real vs. Catalent | Granite Real vs. Cebu Air ADR | Granite Real vs. LENSAR Inc | Granite Real vs. Xtant Medical Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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