Correlation Between Aquagold International and Webster Financial
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Webster Financial 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 Webster Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Webster Financial, you can compare the effects of market volatilities on Aquagold International and Webster Financial 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 Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Webster Financial.
Diversification Opportunities for Aquagold International and Webster Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Webster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial 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 Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of Aquagold International i.e., Aquagold International and Webster Financial go up and down completely randomly.
Pair Corralation between Aquagold International and Webster Financial
If you would invest 4,434 in Webster Financial on September 13, 2024 and sell it today you would earn a total of 1,458 from holding Webster Financial or generate 32.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Webster Financial
Performance |
| Timeline |
| Aquagold International |
| Webster Financial |
Aquagold International and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Webster Financial
The main advantage of trading using opposite Aquagold International and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Webster Financial 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Webster Financial vs. Comerica | Webster Financial vs. Truist Financial Corp | Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Regions Financial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |