Correlation Between Aquagold International and Mainstreet Bank
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Mainstreet Bank 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 Mainstreet Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Mainstreet Bank, you can compare the effects of market volatilities on Aquagold International and Mainstreet Bank 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 Mainstreet Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Mainstreet Bank.
Diversification Opportunities for Aquagold International and Mainstreet Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Mainstreet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Mainstreet Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstreet Bank 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 Mainstreet Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstreet Bank has no effect on the direction of Aquagold International i.e., Aquagold International and Mainstreet Bank go up and down completely randomly.
Pair Corralation between Aquagold International and Mainstreet Bank
If you would invest 1,735 in Mainstreet Bank on September 5, 2024 and sell it today you would earn a total of 137.00 from holding Mainstreet Bank or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. Mainstreet Bank
Performance |
| Timeline |
| Aquagold International |
| Mainstreet Bank |
Aquagold International and Mainstreet Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Mainstreet Bank
The main advantage of trading using opposite Aquagold International and Mainstreet Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Mainstreet Bank 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 Mainstreet Bank will offset losses from the drop in Mainstreet Bank's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Mainstreet Bank vs. Oak Valley Bancorp | Mainstreet Bank vs. Home Federal Bancorp | Mainstreet Bank vs. LINKBANCORP | Mainstreet Bank vs. First Northwest Bancorp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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