Correlation Between Aquagold International and Bank Ozk

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

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

Diversification Opportunities for Aquagold International and Bank Ozk

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Correlation Coefficient

Aquagold International  Bank Ozk

Pay attention - limited upside

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

Pair Corralation between Aquagold International and Bank Ozk

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Bank Ozk. In addition to that, Aquagold International is 4.39 times more volatile than Bank Ozk Preferred. It trades about -0.03 of its total potential returns per unit of risk. Bank Ozk Preferred is currently generating about 0.06 per unit of volatility. If you would invest  1,449  in Bank Ozk Preferred on September 5, 2024 and sell it today you would earn a total of  268.00  from holding Bank Ozk Preferred or generate 18.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Aquagold International  vs.  Bank Ozk Preferred

Aquagold International

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Bank Ozk Preferred

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Aquagold International and Bank Ozk

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

The idea behind Aquagold International and Bank Ozk Preferred 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.