Correlation Between Aker ASA and Link Mobility
Can any of the company-specific risk be diversified away by investing in both Aker ASA and Link Mobility 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 Link Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker ASA and Link Mobility Group, you can compare the effects of market volatilities on Aker ASA and Link Mobility 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 Link Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker ASA and Link Mobility.
Diversification Opportunities for Aker ASA and Link Mobility
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aker and Link is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aker ASA and Link Mobility Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Mobility Group 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 Link Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Mobility Group has no effect on the direction of Aker ASA i.e., Aker ASA and Link Mobility go up and down completely randomly.
Pair Corralation between Aker ASA and Link Mobility
Assuming the 90 days trading horizon Aker ASA is expected to under-perform the Link Mobility. But the stock apears to be less risky and, when comparing its historical volatility, Aker ASA is 2.25 times less risky than Link Mobility. The stock trades about -0.01 of its potential returns per unit of risk. The Link Mobility Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 826.00 in Link Mobility Group on August 30, 2024 and sell it today you would earn a total of 1,514 from holding Link Mobility Group or generate 183.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker ASA vs. Link Mobility Group
Performance |
| Timeline |
| Aker ASA |
| Link Mobility Group |
Aker ASA and Link Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker ASA and Link Mobility
The main advantage of trading using opposite Aker ASA and Link Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker ASA position performs unexpectedly, Link Mobility 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 Link Mobility will offset losses from the drop in Link Mobility's long position.| Aker ASA vs. Storebrand ASA | Aker ASA vs. Aker Solutions ASA | Aker ASA vs. DnB ASA | Aker ASA vs. Orkla ASA |
| Link Mobility vs. Crayon Group Holding | Link Mobility vs. NRC Group ASA | Link Mobility vs. Pexip Holding ASA | Link Mobility vs. Europris 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |