Correlation Between Aker Horizons and Wilh Wilhelmsen
Can any of the company-specific risk be diversified away by investing in both Aker Horizons and Wilh Wilhelmsen 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 Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding, you can compare the effects of market volatilities on Aker Horizons and Wilh Wilhelmsen 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 Wilh Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Horizons and Wilh Wilhelmsen.
Diversification Opportunities for Aker Horizons and Wilh Wilhelmsen
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aker and Wilh is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aker Horizons AS and Wilh Wilhelmsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilh Wilhelmsen Holding 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 Wilh Wilhelmsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilh Wilhelmsen Holding has no effect on the direction of Aker Horizons i.e., Aker Horizons and Wilh Wilhelmsen go up and down completely randomly.
Pair Corralation between Aker Horizons and Wilh Wilhelmsen
Assuming the 90 days trading horizon Aker Horizons AS is expected to under-perform the Wilh Wilhelmsen. In addition to that, Aker Horizons is 2.83 times more volatile than Wilh Wilhelmsen Holding. It trades about -0.21 of its total potential returns per unit of risk. Wilh Wilhelmsen Holding is currently generating about 0.04 per unit of volatility. If you would invest 40,019 in Wilh Wilhelmsen Holding on September 1, 2024 and sell it today you would earn a total of 481.00 from holding Wilh Wilhelmsen Holding or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aker Horizons AS vs. Wilh Wilhelmsen Holding
Performance |
| Timeline |
| Aker Horizons AS |
| Wilh Wilhelmsen Holding |
Aker Horizons and Wilh Wilhelmsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Horizons and Wilh Wilhelmsen
The main advantage of trading using opposite Aker Horizons and Wilh Wilhelmsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Horizons position performs unexpectedly, Wilh Wilhelmsen 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 Wilh Wilhelmsen will offset losses from the drop in Wilh Wilhelmsen'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 |
| Wilh Wilhelmsen vs. Eidesvik Offshore ASA | Wilh Wilhelmsen vs. Borgestad A | Wilh Wilhelmsen vs. Kitron ASA | Wilh Wilhelmsen vs. Havila Shipping 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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