Correlation Between AKKO Invest and BASF SE
Can any of the company-specific risk be diversified away by investing in both AKKO Invest and BASF 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 AKKO Invest and BASF SE 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 BASF SE, you can compare the effects of market volatilities on AKKO Invest and BASF 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 AKKO Invest with a short position of BASF SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and BASF SE.
Diversification Opportunities for AKKO Invest and BASF SE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AKKO and BASF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and BASF SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASF SE 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 BASF SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASF SE has no effect on the direction of AKKO Invest i.e., AKKO Invest and BASF SE go up and down completely randomly.
Pair Corralation between AKKO Invest and BASF SE
If you would invest 34,000 in AKKO Invest Nyrt on December 6, 2024 and sell it today you would earn a total of 500.00 from holding AKKO Invest Nyrt or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
AKKO Invest Nyrt vs. BASF SE
Performance |
| Timeline |
| AKKO Invest Nyrt |
| BASF SE |
Risk-Adjusted Performance
Good
Weak | Strong |
AKKO Invest and BASF SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKKO Invest and BASF SE
The main advantage of trading using opposite AKKO Invest and BASF SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, BASF 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 BASF SE will offset losses from the drop in BASF SE's long position.| AKKO Invest vs. OTP Bank Nyrt | AKKO Invest vs. Infineon Technologies AG | AKKO Invest vs. NordTelekom Telecommunications Service |
| BASF SE vs. OTP Bank Nyrt | BASF SE vs. NordTelekom Telecommunications Service | BASF SE vs. Deutsche Bank AG | BASF SE vs. Infineon Technologies AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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