Correlation Between B Riley and Aquagold International

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

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

Diversification Opportunities for B Riley and Aquagold International

0.0

Correlation Coefficient

B Riley  Aquagold International

Pay attention - limited upside

The 3 months correlation between RILYZ and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding B Riley Financial and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and B Riley 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 B Riley Financial 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 B Riley i.e., B Riley and Aquagold International go up and down completely randomly.

Pair Corralation between B Riley and Aquagold International

Assuming the 90 days horizon B Riley Financial is expected to under-perform the Aquagold International. But the stock apears to be less risky and, when comparing its historical volatility, B Riley Financial is 13.05 times less risky than Aquagold International. The stock trades about 0.0 of its potential returns per unit of risk. The Aquagold International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Aquagold International on September 14, 2024 and sell it today you would lose (20.40) from holding Aquagold International or give up 97.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

B Riley Financial  vs.  Aquagold International

B Riley Financial

Risk-Adjusted Performance

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Very Weak

Over the last 90 days B Riley Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, B Riley is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 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.

Pair Trading with B Riley and Aquagold International

The main advantage of trading using opposite B Riley and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Riley 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 B Riley Financial 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.