Correlation Between Aker Technology and V Tac
Can any of the company-specific risk be diversified away by investing in both Aker Technology and V Tac 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 Aker Technology and V Tac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Technology Co and V Tac Technology Co, you can compare the effects of market volatilities on Aker Technology and V Tac 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 Aker Technology with a short position of V Tac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Technology and V Tac.
Diversification Opportunities for Aker Technology and V Tac
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aker and 6229 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aker Technology Co and V Tac Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V Tac Technology and Aker Technology 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 Aker Technology Co are associated (or correlated) with V Tac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V Tac Technology has no effect on the direction of Aker Technology i.e., Aker Technology and V Tac go up and down completely randomly.
Pair Corralation between Aker Technology and V Tac
Assuming the 90 days trading horizon Aker Technology Co is expected to generate 2.43 times more return on investment than V Tac. However, Aker Technology is 2.43 times more volatile than V Tac Technology Co. It trades about 0.3 of its potential returns per unit of risk. V Tac Technology Co is currently generating about -0.37 per unit of risk. If you would invest 2,110 in Aker Technology Co on September 3, 2024 and sell it today you would earn a total of 630.00 from holding Aker Technology Co or generate 29.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Technology Co vs. V Tac Technology Co
Performance |
| Timeline |
| Aker Technology |
| V Tac Technology |
Aker Technology and V Tac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Technology and V Tac
The main advantage of trading using opposite Aker Technology and V Tac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Technology position performs unexpectedly, V Tac 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 V Tac will offset losses from the drop in V Tac's long position.| Aker Technology vs. Tang Eng Iron | Aker Technology vs. Yeou Yih Steel | Aker Technology vs. Arima Communications Corp | Aker Technology vs. Quintain Steel Co |
| V Tac vs. Sitronix Technology Corp | V Tac vs. Kinsus Interconnect Technology | V Tac vs. WiseChip Semiconductor | V Tac vs. Novatek Microelectronics 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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