Correlation Between AGND and DWS
Can any of the company-specific risk be diversified away by investing in both AGND and DWS 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 AGND and DWS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGND and DWS, you can compare the effects of market volatilities on AGND and DWS 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 AGND with a short position of DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGND and DWS.
Diversification Opportunities for AGND and DWS
Pay attention - limited upside
The 3 months correlation between AGND and DWS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGND and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS and AGND 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 AGND are associated (or correlated) with DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of AGND i.e., AGND and DWS go up and down completely randomly.
Pair Corralation between AGND and DWS
If you would invest (100.00) in DWS on February 6, 2024 and sell it today you would earn a total of 100.00 from holding DWS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGND vs. DWS
Performance |
| Timeline |
| AGND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGND and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGND and DWS
The main advantage of trading using opposite AGND and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGND position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.| AGND vs. First Trust Tactical | AGND vs. First Trust Senior | AGND vs. Aquagold International | AGND vs. Barloworld Ltd ADR |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |