Correlation Between Presidio Property and Aquagold International

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

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

Diversification Opportunities for Presidio Property and Aquagold International

-0.49

Correlation Coefficient

Presidio Property  Aquagold International

Very good diversification

The 3 months correlation between Presidio and Aquagold is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and Aquagold International go up and down completely randomly.

Pair Corralation between Presidio Property and Aquagold International

If you would invest  1,372  in Presidio Property Trust on October 22, 2024 and sell it today you would earn a total of  42.00  from holding Presidio Property Trust or generate 3.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Presidio Property Trust  vs.  Aquagold International

Presidio Property Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Presidio Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Presidio Property is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail 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 weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Presidio Property and Aquagold International

The main advantage of trading using opposite Presidio Property and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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 Presidio Property Trust 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 Transaction History module to view history of all your transactions and understand their impact on performance.