Correlation Between Axactor SE and Aker Horizons
Can any of the company-specific risk be diversified away by investing in both Axactor SE and Aker Horizons 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 Axactor SE and Aker Horizons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axactor SE and Aker Horizons AS, you can compare the effects of market volatilities on Axactor SE and Aker Horizons 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 Axactor SE with a short position of Aker Horizons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axactor SE and Aker Horizons.
Diversification Opportunities for Axactor SE and Aker Horizons
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axactor and Aker is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Axactor SE and Aker Horizons AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Horizons AS and Axactor SE 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 Axactor SE are associated (or correlated) with Aker Horizons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Horizons AS has no effect on the direction of Axactor SE i.e., Axactor SE and Aker Horizons go up and down completely randomly.
Pair Corralation between Axactor SE and Aker Horizons
Assuming the 90 days trading horizon Axactor SE is expected to generate 0.62 times more return on investment than Aker Horizons. However, Axactor SE is 1.6 times less risky than Aker Horizons. It trades about -0.09 of its potential returns per unit of risk. Aker Horizons AS is currently generating about -0.21 per unit of risk. If you would invest 372.00 in Axactor SE on September 1, 2024 and sell it today you would lose (27.00) from holding Axactor SE or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Axactor SE vs. Aker Horizons AS
Performance |
| Timeline |
| Axactor SE |
| Aker Horizons AS |
Axactor SE and Aker Horizons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axactor SE and Aker Horizons
The main advantage of trading using opposite Axactor SE and Aker Horizons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axactor SE position performs unexpectedly, Aker Horizons 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 Aker Horizons will offset losses from the drop in Aker Horizons' long position.| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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