Correlation Between AquaBounty Technologies and Booking Holdings
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies and Booking Holdings 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 AquaBounty Technologies and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Booking Holdings, you can compare the effects of market volatilities on AquaBounty Technologies and Booking Holdings 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 AquaBounty Technologies with a short position of Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Booking Holdings.
Diversification Opportunities for AquaBounty Technologies and Booking Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AquaBounty and Booking is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and AquaBounty Technologies 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 AquaBounty Technologies are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of AquaBounty Technologies i.e., AquaBounty Technologies and Booking Holdings go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Booking Holdings
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Booking Holdings. In addition to that, AquaBounty Technologies is 1.77 times more volatile than Booking Holdings. It trades about -0.17 of its total potential returns per unit of risk. Booking Holdings is currently generating about -0.13 per unit of volatility. If you would invest 366,108 in Booking Holdings on January 26, 2024 and sell it today you would lose (14,356) from holding Booking Holdings or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. Booking Holdings
Performance |
| Timeline |
| AquaBounty Technologies |
| Booking Holdings |
AquaBounty Technologies and Booking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Booking Holdings
The main advantage of trading using opposite AquaBounty Technologies and Booking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies position performs unexpectedly, Booking Holdings 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 Booking Holdings will offset losses from the drop in Booking Holdings' long position.| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. AgriFORCE Growing Systems |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |