Correlation Between Aquagold International and American Beacon
Can any of the company-specific risk be diversified away by investing in both Aquagold International and American Beacon 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 American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and American Beacon Stephens, you can compare the effects of market volatilities on Aquagold International and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and American Beacon.
Diversification Opportunities for Aquagold International and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and American Beacon Stephens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Stephens 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Stephens has no effect on the direction of Aquagold International i.e., Aquagold International and American Beacon go up and down completely randomly.
Pair Corralation between Aquagold International and American Beacon
If you would invest 1,256 in American Beacon Stephens on September 1, 2024 and sell it today you would earn a total of 126.00 from holding American Beacon Stephens or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. American Beacon Stephens
Performance |
| Timeline |
| Aquagold International |
| American Beacon Stephens |
Aquagold International and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and American Beacon
The main advantage of trading using opposite Aquagold International and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| American Beacon vs. American Beacon Stephens | American Beacon vs. American Beacon Stephens | American Beacon vs. Alger Small Cap | American Beacon vs. Amg Timessquare Small |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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