Correlation Between Aquagold International and Angel Oak

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

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

Diversification Opportunities for Aquagold International and Angel Oak

-0.23

Correlation Coefficient

Aquagold International  Angel Oak

Very good diversification

The 3 months correlation between Aquagold and Angel is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Angel Oak High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak High 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak High has no effect on the direction of Aquagold International i.e., Aquagold International and Angel Oak go up and down completely randomly.

Pair Corralation between Aquagold International and Angel Oak

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Angel Oak. In addition to that, Aquagold International is 39.79 times more volatile than Angel Oak High. It trades about -0.09 of its total potential returns per unit of risk. Angel Oak High is currently generating about 0.15 per unit of volatility. If you would invest  1,069  in Angel Oak High on October 26, 2024 and sell it today you would earn a total of  42.00  from holding Angel Oak High or generate 3.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.4%
Values	Daily Returns

Aquagold International  vs.  Angel Oak High

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 weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Angel Oak High

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak High are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquagold International and Angel Oak

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

The idea behind Aquagold International and Angel Oak High 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.