Correlation Between Aquagold International and Lument Finance
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Lument Finance 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 Lument Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Lument Finance Trust, you can compare the effects of market volatilities on Aquagold International and Lument Finance 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 Lument Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Lument Finance.
Diversification Opportunities for Aquagold International and Lument Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Lument is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Lument Finance Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lument Finance Trust 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 Lument Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lument Finance Trust has no effect on the direction of Aquagold International i.e., Aquagold International and Lument Finance go up and down completely randomly.
Pair Corralation between Aquagold International and Lument Finance
If you would invest 253.00 in Lument Finance Trust on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Lument Finance Trust or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Lument Finance Trust
Performance |
| Timeline |
| Aquagold International |
| Lument Finance Trust |
Aquagold International and Lument Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Lument Finance
The main advantage of trading using opposite Aquagold International and Lument Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Lument Finance 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 Lument Finance will offset losses from the drop in Lument Finance's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Lument Finance vs. AGNC Investment Corp | Lument Finance vs. Aquagold International | Lument Finance vs. Morningstar Unconstrained Allocation | Lument Finance vs. Thrivent High Yield |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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