Correlation Between Aquagold International and P2 Gold
Can any of the company-specific risk be diversified away by investing in both Aquagold International and P2 Gold 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 P2 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and P2 Gold, you can compare the effects of market volatilities on Aquagold International and P2 Gold 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 P2 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and P2 Gold.
Diversification Opportunities for Aquagold International and P2 Gold
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquagold and PGLDF is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and P2 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P2 Gold 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 P2 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P2 Gold has no effect on the direction of Aquagold International i.e., Aquagold International and P2 Gold go up and down completely randomly.
Pair Corralation between Aquagold International and P2 Gold
Given the investment horizon of 90 days Aquagold International is expected to generate 6.08 times more return on investment than P2 Gold. However, Aquagold International is 6.08 times more volatile than P2 Gold. It trades about 0.06 of its potential returns per unit of risk. P2 Gold is currently generating about 0.01 per unit of risk. If you would invest 0.10 in Aquagold International on November 28, 2024 and sell it today you would lose (0.08) from holding Aquagold International or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
Aquagold International vs. P2 Gold
Performance |
| Timeline |
| Aquagold International |
| P2 Gold |
Aquagold International and P2 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and P2 Gold
The main advantage of trading using opposite Aquagold International and P2 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, P2 Gold 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 P2 Gold will offset losses from the drop in P2 Gold's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| P2 Gold vs. Max Resource Corp | P2 Gold vs. Western Alaska Minerals | P2 Gold vs. CMC Metals | P2 Gold vs. Summa Silver Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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