Correlation Between Aquagold International and Meet Kevin

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

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

Diversification Opportunities for Aquagold International and Meet Kevin

0.0

Correlation Coefficient

Aquagold International  Meet Kevin

Pay attention - limited upside

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

Pair Corralation between Aquagold International and Meet Kevin

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Meet Kevin. In addition to that, Aquagold International is 11.07 times more volatile than The Meet Kevin. It trades about -0.17 of its total potential returns per unit of risk. The Meet Kevin is currently generating about 0.01 per unit of volatility. If you would invest  2,602  in The Meet Kevin on December 20, 2024 and sell it today you would earn a total of  8.00  from holding The Meet Kevin or generate 0.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	75.81%
Values	Daily Returns

Aquagold International  vs.  The Meet Kevin

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.

Meet Kevin

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Aquagold International and Meet Kevin

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

The idea behind Aquagold International and The Meet Kevin 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.