Correlation Between Aquagold International and Sun Hung
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Sun Hung 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 Sun Hung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Sun Hung Kai, you can compare the effects of market volatilities on Aquagold International and Sun Hung 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 Sun Hung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Sun Hung.
Diversification Opportunities for Aquagold International and Sun Hung
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Sun Hung Kai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Hung Kai 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 Sun Hung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Hung Kai has no effect on the direction of Aquagold International i.e., Aquagold International and Sun Hung go up and down completely randomly.
Pair Corralation between Aquagold International and Sun Hung
Given the investment horizon of 90 days Aquagold International is expected to generate 33.58 times more return on investment than Sun Hung. However, Aquagold International is 33.58 times more volatile than Sun Hung Kai. It trades about 0.06 of its potential returns per unit of risk. Sun Hung Kai is currently generating about -0.01 per unit of risk. If you would invest 25.00 in Aquagold International on September 2, 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. Sun Hung Kai
Performance |
| Timeline |
| Aquagold International |
| Sun Hung Kai |
Aquagold International and Sun Hung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Sun Hung
The main advantage of trading using opposite Aquagold International and Sun Hung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Sun Hung 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 Sun Hung will offset losses from the drop in Sun Hung's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Sun Hung vs. HUMANA INC | Sun Hung vs. SCOR PK | Sun Hung vs. Aquagold International | Sun Hung vs. Thrivent High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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