Correlation Between Acorn Energy and Fortive Corp
Can any of the company-specific risk be diversified away by investing in both Acorn Energy and Fortive Corp 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 Acorn Energy and Fortive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn Energy and Fortive Corp, you can compare the effects of market volatilities on Acorn Energy and Fortive Corp 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 Acorn Energy with a short position of Fortive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn Energy and Fortive Corp.
Diversification Opportunities for Acorn Energy and Fortive Corp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acorn and Fortive is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Acorn Energy and Fortive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortive Corp and Acorn Energy 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 Acorn Energy are associated (or correlated) with Fortive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortive Corp has no effect on the direction of Acorn Energy i.e., Acorn Energy and Fortive Corp go up and down completely randomly.
Pair Corralation between Acorn Energy and Fortive Corp
If you would invest 7,586 in Fortive Corp on August 23, 2024 and sell it today you would earn a total of 109.00 from holding Fortive Corp or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Acorn Energy vs. Fortive Corp
Performance |
| Timeline |
| Acorn Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fortive Corp |
Acorn Energy and Fortive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acorn Energy and Fortive Corp
The main advantage of trading using opposite Acorn Energy and Fortive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn Energy position performs unexpectedly, Fortive Corp 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 Fortive Corp will offset losses from the drop in Fortive Corp's long position.| Acorn Energy vs. Mind Technology | Acorn Energy vs. Cepton Inc | Acorn Energy vs. SaverOne 2014 Ltd | Acorn Energy vs. Fortive Corp |
| Fortive Corp vs. Vishay Precision Group | Fortive Corp vs. Sensata Technologies Holding | Fortive Corp vs. Badger Meter | Fortive Corp vs. Trimble |
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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