Correlation Between Aquagold International and Dollar General
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Dollar General 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 Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Dollar General, you can compare the effects of market volatilities on Aquagold International and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Dollar General.
Diversification Opportunities for Aquagold International and Dollar General
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Dollar is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Aquagold International i.e., Aquagold International and Dollar General go up and down completely randomly.
Pair Corralation between Aquagold International and Dollar General
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Dollar General. In addition to that, Aquagold International is 2.64 times more volatile than Dollar General. It trades about -0.13 of its total potential returns per unit of risk. Dollar General is currently generating about 0.12 per unit of volatility. If you would invest 7,510 in Dollar General on December 28, 2024 and sell it today you would earn a total of 1,244 from holding Dollar General or generate 16.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Aquagold International vs. Dollar General
Performance |
Timeline |
Aquagold International |
Dollar General |
Aquagold International and Dollar General Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquagold International and Dollar General
The main advantage of trading using opposite Aquagold International and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
Dollar General vs. BJs Wholesale Club | Dollar General vs. Costco Wholesale Corp | Dollar General vs. Walmart | Dollar General vs. Dollar Tree |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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