Correlation Between Aquagold International and MSA Safety
Can any of the company-specific risk be diversified away by investing in both Aquagold International and MSA Safety 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 MSA Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and MSA Safety, you can compare the effects of market volatilities on Aquagold International and MSA Safety 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 MSA Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and MSA Safety.
Diversification Opportunities for Aquagold International and MSA Safety
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and MSA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and MSA Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSA Safety 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 MSA Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSA Safety has no effect on the direction of Aquagold International i.e., Aquagold International and MSA Safety go up and down completely randomly.
Pair Corralation between Aquagold International and MSA Safety
Given the investment horizon of 90 days Aquagold International is expected to generate 35.03 times more return on investment than MSA Safety. However, Aquagold International is 35.03 times more volatile than MSA Safety. It trades about 0.06 of its potential returns per unit of risk. MSA Safety is currently generating about 0.05 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 | 100.0% |
| Values | Daily Returns |
Aquagold International vs. MSA Safety
Performance |
| Timeline |
| Aquagold International |
| MSA Safety |
Aquagold International and MSA Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and MSA Safety
The main advantage of trading using opposite Aquagold International and MSA Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, MSA Safety 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 MSA Safety will offset losses from the drop in MSA Safety's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |