Correlation Between Aquagold International and Nikola Corp
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Nikola Corp 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 Nikola Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Nikola Corp, you can compare the effects of market volatilities on Aquagold International and Nikola Corp 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 Nikola Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Nikola Corp.
Diversification Opportunities for Aquagold International and Nikola Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Nikola is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Nikola Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nikola 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 Nikola Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nikola Corp has no effect on the direction of Aquagold International i.e., Aquagold International and Nikola Corp go up and down completely randomly.
Pair Corralation between Aquagold International and Nikola Corp
Given the investment horizon of 90 days Aquagold International is expected to generate 6.65 times more return on investment than Nikola Corp. However, Aquagold International is 6.65 times more volatile than Nikola Corp. It trades about 0.06 of its potential returns per unit of risk. Nikola Corp is currently generating about -0.06 per unit of risk. If you would invest 25.00 in Aquagold International on August 28, 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. Nikola Corp
Performance |
| Timeline |
| Aquagold International |
| Nikola Corp |
Aquagold International and Nikola Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Nikola Corp
The main advantage of trading using opposite Aquagold International and Nikola Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Nikola Corp 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 Nikola Corp will offset losses from the drop in Nikola Corp's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Nikola Corp vs. Lion Electric Corp | Nikola Corp vs. Xos Inc | Nikola Corp vs. Hydrofarm Holdings Group | Nikola Corp vs. Caterpillar |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |