Correlation Between Aquagold International and Amplify Online

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

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

Diversification Opportunities for Aquagold International and Amplify Online

-0.06

Correlation Coefficient

Aquagold International  Amplify Online

Good diversification

The 3 months correlation between Aquagold and Amplify is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Amplify Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Online Retail 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 Amplify Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Online Retail has no effect on the direction of Aquagold International i.e., Aquagold International and Amplify Online go up and down completely randomly.

Pair Corralation between Aquagold International and Amplify Online

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Amplify Online. In addition to that, Aquagold International is 14.8 times more volatile than Amplify Online Retail. It trades about -0.23 of its total potential returns per unit of risk. Amplify Online Retail is currently generating about -0.3 per unit of volatility. If you would invest  6,922  in Amplify Online Retail on October 15, 2024 and sell it today you would lose (527.00) from holding Amplify Online Retail or give up 7.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Aquagold International  vs.  Amplify Online Retail

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.

Amplify Online Retail

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Online Retail are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Amplify Online is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquagold International and Amplify Online

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

The idea behind Aquagold International and Amplify Online Retail 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.