Correlation Between AKKO Invest and ALTEO Energiaszolgalta
Can any of the company-specific risk be diversified away by investing in both AKKO Invest and ALTEO Energiaszolgalta 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 AKKO Invest and ALTEO Energiaszolgalta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKKO Invest Nyrt and ALTEO Energiaszolgaltato Nyrt, you can compare the effects of market volatilities on AKKO Invest and ALTEO Energiaszolgalta 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 AKKO Invest with a short position of ALTEO Energiaszolgalta. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and ALTEO Energiaszolgalta.
Diversification Opportunities for AKKO Invest and ALTEO Energiaszolgalta
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AKKO and ALTEO is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and ALTEO Energiaszolgaltato Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTEO Energiaszolgalta and AKKO Invest 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 AKKO Invest Nyrt are associated (or correlated) with ALTEO Energiaszolgalta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTEO Energiaszolgalta has no effect on the direction of AKKO Invest i.e., AKKO Invest and ALTEO Energiaszolgalta go up and down completely randomly.
Pair Corralation between AKKO Invest and ALTEO Energiaszolgalta
Assuming the 90 days trading horizon AKKO Invest Nyrt is expected to generate 3.02 times more return on investment than ALTEO Energiaszolgalta. However, AKKO Invest is 3.02 times more volatile than ALTEO Energiaszolgaltato Nyrt. It trades about 0.13 of its potential returns per unit of risk. ALTEO Energiaszolgaltato Nyrt is currently generating about -0.18 per unit of risk. If you would invest 30,500 in AKKO Invest Nyrt on September 18, 2024 and sell it today you would earn a total of 4,000 from holding AKKO Invest Nyrt or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AKKO Invest Nyrt vs. ALTEO Energiaszolgaltato Nyrt
Performance |
| Timeline |
| AKKO Invest Nyrt |
| ALTEO Energiaszolgalta |
AKKO Invest and ALTEO Energiaszolgalta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKKO Invest and ALTEO Energiaszolgalta
The main advantage of trading using opposite AKKO Invest and ALTEO Energiaszolgalta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta will offset losses from the drop in ALTEO Energiaszolgalta's long position.| AKKO Invest vs. OPUS GLOBAL Nyrt | AKKO Invest vs. OTP Bank Nyrt | AKKO Invest vs. Appeninn Nyrt | AKKO Invest vs. MOL Nyrt |
| ALTEO Energiaszolgalta vs. CIG Pannonia Life | ALTEO Energiaszolgalta vs. AKKO Invest Nyrt | ALTEO Energiaszolgalta vs. Deutsche Lufthansa AG | ALTEO Energiaszolgalta vs. AutoWallis Nyrt |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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