Correlation Between Aquagold International and John Bean
Can any of the company-specific risk be diversified away by investing in both Aquagold International and John Bean 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 John Bean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and John Bean Technologies, you can compare the effects of market volatilities on Aquagold International and John Bean 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 John Bean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and John Bean.
Diversification Opportunities for Aquagold International and John Bean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and John Bean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Bean Technologies 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 John Bean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Bean Technologies has no effect on the direction of Aquagold International i.e., Aquagold International and John Bean go up and down completely randomly.
Pair Corralation between Aquagold International and John Bean
If you would invest 11,479 in John Bean Technologies on August 30, 2024 and sell it today you would earn a total of 1,047 from holding John Bean Technologies or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. John Bean Technologies
Performance |
| Timeline |
| Aquagold International |
| John Bean Technologies |
Aquagold International and John Bean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and John Bean
The main advantage of trading using opposite Aquagold International and John Bean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, John Bean 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 John Bean will offset losses from the drop in John Bean's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| John Bean vs. Illinois Tool Works | John Bean vs. Pentair PLC | John Bean vs. Emerson Electric | John Bean vs. Smith AO |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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