Correlation Between Unique Optical and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Unique Optical and Aker Technology 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 Unique Optical and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unique Optical Industrial and Aker Technology Co, you can compare the effects of market volatilities on Unique Optical and Aker Technology 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 Unique Optical with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unique Optical and Aker Technology.
Diversification Opportunities for Unique Optical and Aker Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unique and Aker is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Unique Optical Industrial and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Unique Optical 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 Unique Optical Industrial are associated (or correlated) with Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Unique Optical i.e., Unique Optical and Aker Technology go up and down completely randomly.
Pair Corralation between Unique Optical and Aker Technology
Assuming the 90 days trading horizon Unique Optical Industrial is expected to generate 0.72 times more return on investment than Aker Technology. However, Unique Optical Industrial is 1.38 times less risky than Aker Technology. It trades about 0.01 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.13 per unit of risk. If you would invest 3,580 in Unique Optical Industrial on October 30, 2024 and sell it today you would lose (5.00) from holding Unique Optical Industrial or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unique Optical Industrial vs. Aker Technology Co
Performance |
| Timeline |
| Unique Optical Industrial |
| Aker Technology |
Unique Optical and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unique Optical and Aker Technology
The main advantage of trading using opposite Unique Optical and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unique Optical position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Unique Optical vs. Advantech Co | Unique Optical vs. IEI Integration Corp | Unique Optical vs. Flytech Technology Co | Unique Optical vs. Ennoconn Corp |
| Aker Technology vs. Advantech Co | Aker Technology vs. IEI Integration Corp | Aker Technology vs. Flytech Technology Co | Aker Technology vs. Ennoconn Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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