Correlation Between Aquagold International and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Kenon Holdings 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 Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Kenon Holdings, you can compare the effects of market volatilities on Aquagold International and Kenon Holdings 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 Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Kenon Holdings.
Diversification Opportunities for Aquagold International and Kenon Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Kenon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings 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 Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of Aquagold International i.e., Aquagold International and Kenon Holdings go up and down completely randomly.
Pair Corralation between Aquagold International and Kenon Holdings
If you would invest 2,848 in Kenon Holdings on September 13, 2024 and sell it today you would earn a total of 231.00 from holding Kenon Holdings or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Kenon Holdings
Performance |
| Timeline |
| Aquagold International |
| Kenon Holdings |
Aquagold International and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Kenon Holdings
The main advantage of trading using opposite Aquagold International and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Kenon Holdings vs. AGL Energy | Kenon Holdings vs. Aquagold International | Kenon Holdings vs. Thrivent High Yield | Kenon Holdings vs. Morningstar Unconstrained Allocation |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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