Correlation Between Aker Carbon and Scatec Solar
Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Scatec Solar 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 Scatec Solar 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 Scatec Solar OL, you can compare the effects of market volatilities on Aker Carbon and Scatec Solar 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 Scatec Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Scatec Solar.
Diversification Opportunities for Aker Carbon and Scatec Solar
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aker and Scatec is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Scatec Solar OL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scatec Solar OL 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 Scatec Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scatec Solar OL has no effect on the direction of Aker Carbon i.e., Aker Carbon and Scatec Solar go up and down completely randomly.
Pair Corralation between Aker Carbon and Scatec Solar
Assuming the 90 days trading horizon Aker Carbon Capture is expected to under-perform the Scatec Solar. But the stock apears to be less risky and, when comparing its historical volatility, Aker Carbon Capture is 1.18 times less risky than Scatec Solar. The stock trades about -0.13 of its potential returns per unit of risk. The Scatec Solar OL is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 8,405 in Scatec Solar OL on August 25, 2024 and sell it today you would lose (420.00) from holding Scatec Solar OL or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Carbon Capture vs. Scatec Solar OL
Performance |
| Timeline |
| Aker Carbon Capture |
| Scatec Solar OL |
Aker Carbon and Scatec Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Carbon and Scatec Solar
The main advantage of trading using opposite Aker Carbon and Scatec Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Carbon position performs unexpectedly, Scatec Solar 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 Scatec Solar will offset losses from the drop in Scatec Solar'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 |
| Scatec Solar vs. Aker Carbon Capture | Scatec Solar vs. Elkem ASA | Scatec Solar vs. Vow ASA | Scatec Solar vs. North Energy 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |