Correlation Between Materials Analysis and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Materials Analysis 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 Materials Analysis and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materials Analysis Technology and Aker Technology Co, you can compare the effects of market volatilities on Materials Analysis 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 Materials Analysis with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materials Analysis and Aker Technology.
Diversification Opportunities for Materials Analysis and Aker Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Materials and Aker is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Materials Analysis Technology and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Materials Analysis 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 Materials Analysis Technology 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 Materials Analysis i.e., Materials Analysis and Aker Technology go up and down completely randomly.
Pair Corralation between Materials Analysis and Aker Technology
Assuming the 90 days trading horizon Materials Analysis Technology is expected to generate 1.18 times more return on investment than Aker Technology. However, Materials Analysis is 1.18 times more volatile than Aker Technology Co. It trades about 0.06 of its potential returns per unit of risk. Aker Technology Co is currently generating about 0.01 per unit of risk. If you would invest 14,173 in Materials Analysis Technology on September 14, 2024 and sell it today you would earn a total of 11,177 from holding Materials Analysis Technology or generate 78.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materials Analysis Technology vs. Aker Technology Co
Performance |
| Timeline |
| Materials Analysis |
| Aker Technology |
Materials Analysis and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materials Analysis and Aker Technology
The main advantage of trading using opposite Materials Analysis and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materials Analysis 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.| Materials Analysis vs. Integrated Service Technology | Materials Analysis vs. ASE Industrial Holding | Materials Analysis vs. eMemory Technology | Materials Analysis vs. Ruentex Development Co |
| Aker Technology vs. Materials Analysis Technology | Aker Technology vs. Genovate Biotechnology Co | Aker Technology vs. Shan Loong Transportation Co | Aker Technology vs. Thermaltake Technology Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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