Correlation Between Aquagold International and Hennessy Stance
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Hennessy Stance 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 Hennessy Stance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Hennessy Stance ESG, you can compare the effects of market volatilities on Aquagold International and Hennessy Stance 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 Hennessy Stance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Hennessy Stance.
Diversification Opportunities for Aquagold International and Hennessy Stance
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aquagold and Hennessy is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Hennessy Stance ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Stance ESG 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 Hennessy Stance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Stance ESG has no effect on the direction of Aquagold International i.e., Aquagold International and Hennessy Stance go up and down completely randomly.
Pair Corralation between Aquagold International and Hennessy Stance
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Hennessy Stance. In addition to that, Aquagold International is 13.72 times more volatile than Hennessy Stance ESG. It trades about -0.21 of its total potential returns per unit of risk. Hennessy Stance ESG is currently generating about 0.06 per unit of volatility. If you would invest 3,146 in Hennessy Stance ESG on November 28, 2024 and sell it today you would earn a total of 30.00 from holding Hennessy Stance ESG or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. Hennessy Stance ESG
Performance |
| Timeline |
| Aquagold International |
| Hennessy Stance ESG |
Aquagold International and Hennessy Stance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Hennessy Stance
The main advantage of trading using opposite Aquagold International and Hennessy Stance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Hennessy Stance 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 Hennessy Stance will offset losses from the drop in Hennessy Stance's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Hennessy Stance vs. iShares ESG Screened | Hennessy Stance vs. Innovator Equity Accelerated | Hennessy Stance vs. iShares ESG Screened | Hennessy Stance vs. Innovator Equity Accelerated |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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