Correlation Between Aquagold International and STF Tactical

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

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

Diversification Opportunities for Aquagold International and STF Tactical

-0.29

Correlation Coefficient

Aquagold International  STF Tactical

Very good diversification

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

Pair Corralation between Aquagold International and STF Tactical

Given the investment horizon of 90 days Aquagold International is expected to under-perform the STF Tactical. In addition to that, Aquagold International is 9.96 times more volatile than STF Tactical Growth. It trades about -0.17 of its total potential returns per unit of risk. STF Tactical Growth is currently generating about -0.09 per unit of volatility. If you would invest  3,367  in STF Tactical Growth on December 19, 2024 and sell it today you would lose (242.00) from holding STF Tactical Growth or give up 7.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Aquagold International  vs.  STF Tactical Growth

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.

STF Tactical Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days STF Tactical Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Etf's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholders.

Pair Trading with Aquagold International and STF Tactical

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

The idea behind Aquagold International and STF Tactical Growth 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.