Correlation Between Aquagold International and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Guinness Atkinson 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 Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Guinness Atkinson Asia, you can compare the effects of market volatilities on Aquagold International and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Guinness Atkinson.
Diversification Opportunities for Aquagold International and Guinness Atkinson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Guinness is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Guinness Atkinson Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asia 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asia has no effect on the direction of Aquagold International i.e., Aquagold International and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Aquagold International and Guinness Atkinson
Given the investment horizon of 90 days Aquagold International is expected to generate 41.56 times more return on investment than Guinness Atkinson. However, Aquagold International is 41.56 times more volatile than Guinness Atkinson Asia. It trades about 0.06 of its potential returns per unit of risk. Guinness Atkinson Asia is currently generating about 0.01 per unit of risk. If you would invest 25.00 in Aquagold International on August 26, 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. Guinness Atkinson Asia
Performance |
| Timeline |
| Aquagold International |
| Guinness Atkinson Asia |
Aquagold International and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Guinness Atkinson
The main advantage of trading using opposite Aquagold International and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
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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