Correlation Between New York and Aquagold International
Can any of the company-specific risk be diversified away by investing in both New York and Aquagold International 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 New York and Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Mortgage and Aquagold International, you can compare the effects of market volatilities on New York and Aquagold International 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 New York with a short position of Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Aquagold International.
Diversification Opportunities for New York and Aquagold International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and New York 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 New York Mortgage are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of New York i.e., New York and Aquagold International go up and down completely randomly.
Pair Corralation between New York and Aquagold International
Assuming the 90 days horizon New York Mortgage is expected to generate 0.1 times more return on investment than Aquagold International. However, New York Mortgage is 10.09 times less risky than Aquagold International. It trades about 0.17 of its potential returns per unit of risk. Aquagold International is currently generating about -0.03 per unit of risk. If you would invest 2,008 in New York Mortgage on August 24, 2024 and sell it today you would earn a total of 504.00 from holding New York Mortgage or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New York Mortgage vs. Aquagold International
Performance |
| Timeline |
| New York Mortgage |
| Aquagold International |
New York and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Aquagold International
The main advantage of trading using opposite New York and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.| New York vs. New York Mortgage | New York vs. AGNC Investment Corp | New York vs. Chimera Investment | New York vs. AGNC Investment Corp |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |