Correlation Between Aquagold International and Global Growth
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Global Growth 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 Global Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Global Growth Fund, you can compare the effects of market volatilities on Aquagold International and Global Growth 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 Global Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Global Growth.
Diversification Opportunities for Aquagold International and Global Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aquagold and Global is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Global Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Growth 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 Global Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Growth has no effect on the direction of Aquagold International i.e., Aquagold International and Global Growth go up and down completely randomly.
Pair Corralation between Aquagold International and Global Growth
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Global Growth. In addition to that, Aquagold International is 15.92 times more volatile than Global Growth Fund. It trades about -0.21 of its total potential returns per unit of risk. Global Growth Fund is currently generating about 0.12 per unit of volatility. If you would invest 1,102 in Global Growth Fund on November 28, 2024 and sell it today you would earn a total of 18.00 from holding Global Growth Fund or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. Global Growth Fund
Performance |
| Timeline |
| Aquagold International |
| Global Growth |
Aquagold International and Global Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Global Growth
The main advantage of trading using opposite Aquagold International and Global Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Global Growth 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 Global Growth will offset losses from the drop in Global Growth's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Global Growth vs. Emerging Markets Fund | Global Growth vs. International Growth Fund | Global Growth vs. Heritage Fund Investor | Global Growth vs. Select Fund Investor |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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