Correlation Between Akamai Technologies, and GP Investments
Can any of the company-specific risk be diversified away by investing in both Akamai Technologies, and GP Investments 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 Akamai Technologies, and GP Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akamai Technologies, and GP Investments, you can compare the effects of market volatilities on Akamai Technologies, and GP Investments 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 Akamai Technologies, with a short position of GP Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akamai Technologies, and GP Investments.
Diversification Opportunities for Akamai Technologies, and GP Investments
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akamai and GPIV33 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Akamai Technologies, and GP Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Investments and Akamai 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 Akamai Technologies, are associated (or correlated) with GP Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Investments has no effect on the direction of Akamai Technologies, i.e., Akamai Technologies, and GP Investments go up and down completely randomly.
Pair Corralation between Akamai Technologies, and GP Investments
Assuming the 90 days trading horizon Akamai Technologies, is expected to under-perform the GP Investments. But the stock apears to be less risky and, when comparing its historical volatility, Akamai Technologies, is 1.44 times less risky than GP Investments. The stock trades about -0.26 of its potential returns per unit of risk. The GP Investments is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 393.00 in GP Investments on October 22, 2024 and sell it today you would earn a total of 20.00 from holding GP Investments or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Akamai Technologies, vs. GP Investments
Performance |
| Timeline |
| Akamai Technologies, |
| GP Investments |
Akamai Technologies, and GP Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akamai Technologies, and GP Investments
The main advantage of trading using opposite Akamai Technologies, and GP Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akamai Technologies, position performs unexpectedly, GP Investments 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 GP Investments will offset losses from the drop in GP Investments' long position.| Akamai Technologies, vs. GP Investments | Akamai Technologies, vs. Global X Funds | Akamai Technologies, vs. Clover Health Investments, | Akamai Technologies, vs. Datadog, |
| GP Investments vs. Vulcan Materials | GP Investments vs. HCA Healthcare, | GP Investments vs. United States Steel | GP Investments vs. Clover Health Investments, |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |