Correlation Between Aquagold International and RF Acquisition
Can any of the company-specific risk be diversified away by investing in both Aquagold International and RF Acquisition 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 RF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and RF Acquisition Corp, you can compare the effects of market volatilities on Aquagold International and RF Acquisition 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 RF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and RF Acquisition.
Diversification Opportunities for Aquagold International and RF Acquisition
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aquagold and RFACW is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and RF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Acquisition 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 RF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Acquisition Corp has no effect on the direction of Aquagold International i.e., Aquagold International and RF Acquisition go up and down completely randomly.
Pair Corralation between Aquagold International and RF Acquisition
If you would invest 5.70 in RF Acquisition Corp on November 5, 2024 and sell it today you would lose (0.70) from holding RF Acquisition Corp or give up 12.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Aquagold International vs. RF Acquisition Corp
Performance |
| Timeline |
| Aquagold International |
| RF Acquisition Corp |
Aquagold International and RF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and RF Acquisition
The main advantage of trading using opposite Aquagold International and RF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, RF Acquisition 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 RF Acquisition will offset losses from the drop in RF Acquisition's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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