Correlation Between Aker Carbon and Bonheur
Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Bonheur 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 Carbon and Bonheur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Carbon Capture and Bonheur, you can compare the effects of market volatilities on Aker Carbon and Bonheur 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 Carbon with a short position of Bonheur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Bonheur.
Diversification Opportunities for Aker Carbon and Bonheur
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aker and Bonheur is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Bonheur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonheur and Aker Carbon 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 Carbon Capture are associated (or correlated) with Bonheur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonheur has no effect on the direction of Aker Carbon i.e., Aker Carbon and Bonheur go up and down completely randomly.
Pair Corralation between Aker Carbon and Bonheur
Assuming the 90 days trading horizon Aker Carbon Capture is expected to under-perform the Bonheur. In addition to that, Aker Carbon is 1.28 times more volatile than Bonheur. It trades about -0.13 of its total potential returns per unit of risk. Bonheur is currently generating about -0.16 per unit of volatility. If you would invest 27,750 in Bonheur on August 25, 2024 and sell it today you would lose (1,450) from holding Bonheur or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Carbon Capture vs. Bonheur
Performance |
| Timeline |
| Aker Carbon Capture |
| Bonheur |
Aker Carbon and Bonheur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Carbon and Bonheur
The main advantage of trading using opposite Aker Carbon and Bonheur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Carbon position performs unexpectedly, Bonheur 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 Bonheur will offset losses from the drop in Bonheur's long position.| Aker Carbon vs. Arctic Bioscience AS | Aker Carbon vs. ADS Maritime Holding | Aker Carbon vs. Arctic Fish Holding | Aker Carbon vs. Instabank ASA |
| Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard ASA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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