Correlation Between Aquagold International and First Business
Can any of the company-specific risk be diversified away by investing in both Aquagold International and First Business 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 First Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and First Business Financial, you can compare the effects of market volatilities on Aquagold International and First Business 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 First Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and First Business.
Diversification Opportunities for Aquagold International and First Business
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and First Business Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Business 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 First Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Business Financial has no effect on the direction of Aquagold International i.e., Aquagold International and First Business go up and down completely randomly.
Pair Corralation between Aquagold International and First Business
Given the investment horizon of 90 days Aquagold International is expected to generate 23.64 times more return on investment than First Business. However, Aquagold International is 23.64 times more volatile than First Business Financial. It trades about 0.06 of its potential returns per unit of risk. First Business Financial is currently generating about 0.05 per unit of risk. If you would invest 17.00 in Aquagold International on September 7, 2024 and sell it today you would lose (16.40) from holding Aquagold International or give up 96.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Aquagold International vs. First Business Financial
Performance |
Timeline |
Aquagold International |
First Business Financial |
Aquagold International and First Business Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquagold International and First Business
The main advantage of trading using opposite Aquagold International and First Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, First Business 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 First Business will offset losses from the drop in First Business' long position.Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
First Business vs. Home Federal Bancorp | First Business vs. Lake Shore Bancorp | First Business vs. Old Point Financial | First Business vs. Parke Bancorp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |