Correlation Between Aquagold International and SYNTHETIC FIXED

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

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

Diversification Opportunities for Aquagold International and SYNTHETIC FIXED

0.0

Correlation Coefficient

Aquagold International  SYNTHETIC FIXED

Pay attention - limited upside

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

Pair Corralation between Aquagold International and SYNTHETIC FIXED

If you would invest (100.00) in SYNTHETIC FIXED INCOME on December 22, 2024 and sell it today you would earn a total of  100.00  from holding SYNTHETIC FIXED INCOME or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aquagold International  vs.  SYNTHETIC FIXED INCOME

Aquagold International

Risk-Adjusted Performance

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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

SYNTHETIC FIXED INCOME

Risk-Adjusted Performance

Very Weak

Over the last 90 days SYNTHETIC FIXED INCOME has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking indicators, SYNTHETIC FIXED is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aquagold International and SYNTHETIC FIXED

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

The idea behind Aquagold International and SYNTHETIC FIXED INCOME 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.