Correlation Between Aquagold International and Hillenbrand
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Hillenbrand 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 Hillenbrand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Hillenbrand, you can compare the effects of market volatilities on Aquagold International and Hillenbrand 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 Hillenbrand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Hillenbrand.
Diversification Opportunities for Aquagold International and Hillenbrand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Hillenbrand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Hillenbrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillenbrand 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 Hillenbrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillenbrand has no effect on the direction of Aquagold International i.e., Aquagold International and Hillenbrand go up and down completely randomly.
Pair Corralation between Aquagold International and Hillenbrand
Given the investment horizon of 90 days Aquagold International is expected to generate 22.15 times more return on investment than Hillenbrand. However, Aquagold International is 22.15 times more volatile than Hillenbrand. It trades about 0.06 of its potential returns per unit of risk. Hillenbrand is currently generating about -0.02 per unit of risk. If you would invest 25.00 in Aquagold International on August 27, 2024 and sell it today you would lose (24.40) from holding Aquagold International or give up 97.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Hillenbrand
Performance |
| Timeline |
| Aquagold International |
| Hillenbrand |
Aquagold International and Hillenbrand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Hillenbrand
The main advantage of trading using opposite Aquagold International and Hillenbrand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Hillenbrand 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 Hillenbrand will offset losses from the drop in Hillenbrand's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Hillenbrand vs. Aquagold International | Hillenbrand vs. Morningstar Unconstrained Allocation | Hillenbrand vs. High Yield Municipal Fund | Hillenbrand 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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