Correlation Between Aquagold International and Fisher Small
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Fisher Small 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 Fisher Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Fisher Small Cap, you can compare the effects of market volatilities on Aquagold International and Fisher Small 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 Fisher Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Fisher Small.
Diversification Opportunities for Aquagold International and Fisher Small
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquagold and Fisher is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Small Cap 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 Fisher Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Small Cap has no effect on the direction of Aquagold International i.e., Aquagold International and Fisher Small go up and down completely randomly.
Pair Corralation between Aquagold International and Fisher Small
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Fisher Small. In addition to that, Aquagold International is 10.5 times more volatile than Fisher Small Cap. It trades about -0.22 of its total potential returns per unit of risk. Fisher Small Cap is currently generating about -0.4 per unit of volatility. If you would invest 1,294 in Fisher Small Cap on November 27, 2024 and sell it today you would lose (104.00) from holding Fisher Small Cap or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aquagold International vs. Fisher Small Cap
Performance |
| Timeline |
| Aquagold International |
| Fisher Small Cap |
Aquagold International and Fisher Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Fisher Small
The main advantage of trading using opposite Aquagold International and Fisher Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Fisher Small 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 Fisher Small will offset losses from the drop in Fisher Small's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Fisher Small vs. Lord Abbett Diversified | Fisher Small vs. Blackrock Conservative Prprdptfinstttnl | Fisher Small vs. Stone Ridge Diversified | Fisher Small vs. Manning Napier Diversified |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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