Correlation Between Aquagold International and Cardlytics

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

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

Diversification Opportunities for Aquagold International and Cardlytics

0.29

Correlation Coefficient

Aquagold International  Cardlytics

Modest diversification

The 3 months correlation between Aquagold and Cardlytics is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics 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 Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of Aquagold International i.e., Aquagold International and Cardlytics go up and down completely randomly.

Pair Corralation between Aquagold International and Cardlytics

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Cardlytics. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aquagold International is 1.41 times less risky than Cardlytics. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Cardlytics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  614.00  in Cardlytics on October 14, 2024 and sell it today you would lose (301.00) from holding Cardlytics or give up 49.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.6%
Values	Daily Returns

Aquagold International  vs.  Cardlytics

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.

Cardlytics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cardlytics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Aquagold International and Cardlytics

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

The idea behind Aquagold International and Cardlytics 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 Commodity Directory module to find actively traded commodities issued by global exchanges.