Correlation Between SPACE and Aquagold International

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

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

Diversification Opportunities for SPACE and Aquagold International

0.69

Correlation Coefficient

SPACE  Aquagold International

Poor diversification

The 3 months correlation between SPACE and Aquagold is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and SPACE 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 SPACE are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of SPACE i.e., SPACE and Aquagold International go up and down completely randomly.

Pair Corralation between SPACE and Aquagold International

Assuming the 90 days horizon SPACE is expected to under-perform the Aquagold International. In addition to that, SPACE is 1.04 times more volatile than Aquagold International. It trades about -0.12 of its total potential returns per unit of risk. Aquagold International is currently generating about -0.12 per unit of volatility. If you would invest  0.04  in Aquagold International on December 29, 2024 and sell it today you would lose (0.02) from holding Aquagold International or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SPACE  vs.  Aquagold International

SPACE

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPACE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for SPACE shareholders.

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.

Pair Trading with SPACE and Aquagold International

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

The idea behind SPACE and Aquagold International 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.