Correlation Between Aquagold International and Tidal Trust

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

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

Diversification Opportunities for Aquagold International and Tidal Trust

0.29

Correlation Coefficient

Aquagold International  Tidal Trust

Modest diversification

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

Pair Corralation between Aquagold International and Tidal Trust

Given the investment horizon of 90 days Aquagold International is expected to generate 17.5 times more return on investment than Tidal Trust. However, Aquagold International is 17.5 times more volatile than Tidal Trust II. It trades about 0.05 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.06 per unit of risk. If you would invest  17.00  in Aquagold International on October 10, 2024 and sell it today you would lose (16.96) from holding Aquagold International or give up 99.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	61.21%
Values	Daily Returns

Aquagold International  vs.  Tidal Trust II

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.

Tidal Trust II

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tidal Trust II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Aquagold International and Tidal Trust

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

The idea behind Aquagold International and Tidal Trust II 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.