Correlation Between Sentage Holdings and Aquagold International
Can any of the company-specific risk be diversified away by investing in both Sentage Holdings 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 Sentage Holdings and Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentage Holdings and Aquagold International, you can compare the effects of market volatilities on Sentage Holdings 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 Sentage Holdings with a short position of Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentage Holdings and Aquagold International.
Diversification Opportunities for Sentage Holdings and Aquagold International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sentage and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sentage Holdings and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and Sentage Holdings 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 Sentage Holdings 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 Sentage Holdings i.e., Sentage Holdings and Aquagold International go up and down completely randomly.
Pair Corralation between Sentage Holdings and Aquagold International
Given the investment horizon of 90 days Sentage Holdings is expected to under-perform the Aquagold International. In addition to that, Sentage Holdings is 3.65 times more volatile than Aquagold International. It trades about -0.01 of its total potential returns per unit of risk. Aquagold International is currently generating about 0.07 per unit of volatility. If you would invest 0.50 in Aquagold International on August 28, 2024 and sell it today you would earn a total of 0.10 from holding Aquagold International or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentage Holdings vs. Aquagold International
Performance |
| Timeline |
| Sentage Holdings |
| Aquagold International |
Sentage Holdings and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentage Holdings and Aquagold International
The main advantage of trading using opposite Sentage Holdings and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentage Holdings 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.| Sentage Holdings vs. Yirendai | Sentage Holdings vs. Lexinfintech Holdings | Sentage Holdings vs. Lufax Holding | Sentage Holdings vs. X Financial Class |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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