Correlation Between Aquagold International and Park Ohio
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Park Ohio 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 Park Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Park Ohio Holdings, you can compare the effects of market volatilities on Aquagold International and Park Ohio 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 Park Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Park Ohio.
Diversification Opportunities for Aquagold International and Park Ohio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Park is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Park Ohio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Ohio Holdings 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 Park Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Ohio Holdings has no effect on the direction of Aquagold International i.e., Aquagold International and Park Ohio go up and down completely randomly.
Pair Corralation between Aquagold International and Park Ohio
Given the investment horizon of 90 days Aquagold International is expected to generate 17.11 times more return on investment than Park Ohio. However, Aquagold International is 17.11 times more volatile than Park Ohio Holdings. It trades about 0.06 of its potential returns per unit of risk. Park Ohio Holdings is currently generating about 0.08 per unit of risk. If you would invest 25.00 in Aquagold International on August 30, 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. Park Ohio Holdings
Performance |
| Timeline |
| Aquagold International |
| Park Ohio Holdings |
Aquagold International and Park Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Park Ohio
The main advantage of trading using opposite Aquagold International and Park Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Park Ohio 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 Park Ohio will offset losses from the drop in Park Ohio's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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