Correlation Between Aker Carbon and Everfuel
Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Everfuel 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 Everfuel 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 Everfuel AS, you can compare the effects of market volatilities on Aker Carbon and Everfuel 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 Everfuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Everfuel.
Diversification Opportunities for Aker Carbon and Everfuel
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aker and Everfuel is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Everfuel AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everfuel AS 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 Everfuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everfuel AS has no effect on the direction of Aker Carbon i.e., Aker Carbon and Everfuel go up and down completely randomly.
Pair Corralation between Aker Carbon and Everfuel
Assuming the 90 days trading horizon Aker Carbon Capture is expected to under-perform the Everfuel. But the stock apears to be less risky and, when comparing its historical volatility, Aker Carbon Capture is 2.11 times less risky than Everfuel. The stock trades about -0.06 of its potential returns per unit of risk. The Everfuel AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 946.00 in Everfuel AS on August 25, 2024 and sell it today you would earn a total of 326.00 from holding Everfuel AS or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Carbon Capture vs. Everfuel AS
Performance |
| Timeline |
| Aker Carbon Capture |
| Everfuel AS |
Aker Carbon and Everfuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Carbon and Everfuel
The main advantage of trading using opposite Aker Carbon and Everfuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Carbon position performs unexpectedly, Everfuel 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 Everfuel will offset losses from the drop in Everfuel'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 |
| Everfuel vs. Scatec Solar OL | Everfuel vs. Aker Carbon Capture | Everfuel vs. Elkem ASA | Everfuel vs. Vow 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |