Correlation Between Aker Carbon and Molekule
Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Molekule 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 Molekule 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 Molekule Group, you can compare the effects of market volatilities on Aker Carbon and Molekule 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 Molekule. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Molekule.
Diversification Opportunities for Aker Carbon and Molekule
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aker and Molekule is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Molekule Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molekule Group 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 Molekule. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molekule Group has no effect on the direction of Aker Carbon i.e., Aker Carbon and Molekule go up and down completely randomly.
Pair Corralation between Aker Carbon and Molekule
Assuming the 90 days horizon Aker Carbon Capture is expected to under-perform the Molekule. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aker Carbon Capture is 1.37 times less risky than Molekule. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Molekule Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Molekule Group on November 1, 2024 and sell it today you would earn a total of 17.00 from holding Molekule Group or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.29% |
| Values | Daily Returns |
Aker Carbon Capture vs. Molekule Group
Performance |
| Timeline |
| Aker Carbon Capture |
| Molekule Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aker Carbon and Molekule Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Carbon and Molekule
The main advantage of trading using opposite Aker Carbon and Molekule positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Carbon position performs unexpectedly, Molekule 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 Molekule will offset losses from the drop in Molekule's long position.| Aker Carbon vs. CO2 Solutions | Aker Carbon vs. LifeQuest World | Aker Carbon vs. TOMI Environmental Solutions | Aker Carbon vs. Zurn Elkay Water |
| Molekule vs. Aldel Financial II | Molekule vs. Alphatec Holdings | Molekule vs. Merit Medical Systems | Molekule vs. East Africa Metals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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