Correlation Between Aquagold International and Vycor Medical

Can any of the company-specific risk be diversified away by investing in both Aquagold International and Vycor Medical 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 Vycor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aquagold International and Vycor Medical, you can compare the effects of market volatilities on Aquagold International and Vycor Medical 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 Vycor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Vycor Medical.

Diversification Opportunities for Aquagold International and Vycor Medical

0.0

Correlation Coefficient

Aquagold International  Vycor Medical

Pay attention - limited upside

The 3 months correlation between Aquagold and Vycor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Vycor Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vycor Medical 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 Vycor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vycor Medical has no effect on the direction of Aquagold International i.e., Aquagold International and Vycor Medical go up and down completely randomly.

Pair Corralation between Aquagold International and Vycor Medical

If you would invest  7.90  in Vycor Medical on September 23, 2024 and sell it today you would lose (0.91) from holding Vycor Medical or give up 11.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aquagold International  vs.  Vycor Medical

Aquagold International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Vycor Medical

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vycor Medical are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Vycor Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aquagold International and Vycor Medical

The main advantage of trading using opposite Aquagold International and Vycor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Vycor Medical 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 Vycor Medical will offset losses from the drop in Vycor Medical's long position.

The idea behind Aquagold International and Vycor Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.