Correlation Between Aquagold International and Structured Products
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Structured Products 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 Structured Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Structured Products Corp, you can compare the effects of market volatilities on Aquagold International and Structured Products 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 Structured Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Structured Products.
Diversification Opportunities for Aquagold International and Structured Products
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Structured is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Structured Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structured Products Corp 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 Structured Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structured Products Corp has no effect on the direction of Aquagold International i.e., Aquagold International and Structured Products go up and down completely randomly.
Pair Corralation between Aquagold International and Structured Products
Given the investment horizon of 90 days Aquagold International is expected to generate 19.67 times more return on investment than Structured Products. However, Aquagold International is 19.67 times more volatile than Structured Products Corp. It trades about 0.06 of its potential returns per unit of risk. Structured Products Corp is currently generating about 0.02 per unit of risk. If you would invest 25.00 in Aquagold International on September 2, 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 | 97.78% |
| Values | Daily Returns |
Aquagold International vs. Structured Products Corp
Performance |
| Timeline |
| Aquagold International |
| Structured Products Corp |
Aquagold International and Structured Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Structured Products
The main advantage of trading using opposite Aquagold International and Structured Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Structured Products 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 Structured Products will offset losses from the drop in Structured Products' long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Structured Products vs. Credit Enhanced Corts | Structured Products vs. Strats Trust Cellular | Structured Products vs. Goldman Sachs Capital | Structured Products vs. STRATS SM Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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