Correlation Between Aker ASA and Kmc Properties
Can any of the company-specific risk be diversified away by investing in both Aker ASA and Kmc Properties 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 ASA and Kmc Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker ASA and Kmc Properties ASA, you can compare the effects of market volatilities on Aker ASA and Kmc Properties 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 ASA with a short position of Kmc Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker ASA and Kmc Properties.
Diversification Opportunities for Aker ASA and Kmc Properties
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aker and Kmc is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aker ASA and Kmc Properties ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kmc Properties ASA and Aker ASA 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 ASA are associated (or correlated) with Kmc Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kmc Properties ASA has no effect on the direction of Aker ASA i.e., Aker ASA and Kmc Properties go up and down completely randomly.
Pair Corralation between Aker ASA and Kmc Properties
Assuming the 90 days trading horizon Aker ASA is expected to generate 23.17 times less return on investment than Kmc Properties. But when comparing it to its historical volatility, Aker ASA is 24.14 times less risky than Kmc Properties. It trades about 0.17 of its potential returns per unit of risk. Kmc Properties ASA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4.80 in Kmc Properties ASA on November 30, 2024 and sell it today you would earn a total of 3.94 from holding Kmc Properties ASA or generate 82.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker ASA vs. Kmc Properties ASA
Performance |
| Timeline |
| Aker ASA |
| Kmc Properties ASA |
Aker ASA and Kmc Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker ASA and Kmc Properties
The main advantage of trading using opposite Aker ASA and Kmc Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker ASA position performs unexpectedly, Kmc Properties 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 Kmc Properties will offset losses from the drop in Kmc Properties' long position.| Aker ASA vs. Storebrand ASA | Aker ASA vs. Aker Solutions ASA | Aker ASA vs. DnB ASA | Aker ASA vs. Orkla ASA |
| Kmc Properties vs. Entra ASA | Kmc Properties vs. Selvaag Bolig ASA | Kmc Properties vs. Olav Thon Eien | Kmc Properties vs. Pareto Bank 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |