Correlation Between Aker Carbon and Eestech
Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Eestech 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 Eestech 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 Eestech, you can compare the effects of market volatilities on Aker Carbon and Eestech 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 Eestech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Eestech.
Diversification Opportunities for Aker Carbon and Eestech
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aker and Eestech is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Eestech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eestech 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 Eestech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eestech has no effect on the direction of Aker Carbon i.e., Aker Carbon and Eestech go up and down completely randomly.
Pair Corralation between Aker Carbon and Eestech
If you would invest 53.00 in Aker Carbon Capture on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Aker Carbon Capture or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aker Carbon Capture vs. Eestech
Performance |
| Timeline |
| Aker Carbon Capture |
| Eestech |
Aker Carbon and Eestech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Carbon and Eestech
The main advantage of trading using opposite Aker Carbon and Eestech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Carbon position performs unexpectedly, Eestech 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 Eestech will offset losses from the drop in Eestech's long position.| Aker Carbon vs. Eestech | Aker Carbon vs. Bion Environmental Technologies | Aker Carbon vs. TOMI Environmental Solutions |
| Eestech vs. Seychelle Environmtl | Eestech vs. Energy and Water | Eestech vs. One World Universe | Eestech vs. Bion Environmental Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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