Correlation Between Aker Horizons and Axactor SE
Can any of the company-specific risk be diversified away by investing in both Aker Horizons and Axactor SE 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 Horizons and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Horizons AS and Axactor SE, you can compare the effects of market volatilities on Aker Horizons and Axactor SE 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 Horizons with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Horizons and Axactor SE.
Diversification Opportunities for Aker Horizons and Axactor SE
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aker and Axactor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aker Horizons AS and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Aker Horizons 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 Horizons AS are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Aker Horizons i.e., Aker Horizons and Axactor SE go up and down completely randomly.
Pair Corralation between Aker Horizons and Axactor SE
Assuming the 90 days trading horizon Aker Horizons AS is expected to under-perform the Axactor SE. In addition to that, Aker Horizons is 1.6 times more volatile than Axactor SE. It trades about -0.21 of its total potential returns per unit of risk. Axactor SE is currently generating about -0.09 per unit of volatility. 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 |
Aker Horizons AS vs. Axactor SE
Performance |
| Timeline |
| Aker Horizons AS |
| Axactor SE |
Aker Horizons and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Horizons and Axactor SE
The main advantage of trading using opposite Aker Horizons and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Horizons position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| Aker Horizons vs. Aker Carbon Capture | Aker Horizons vs. REC Silicon ASA | Aker Horizons vs. Aker Solutions ASA | Aker Horizons vs. Aker BP ASA |
| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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