Correlation Between AKKO Invest and Commerzbank
Can any of the company-specific risk be diversified away by investing in both AKKO Invest and Commerzbank 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 Commerzbank 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 Commerzbank AG, you can compare the effects of market volatilities on AKKO Invest and Commerzbank 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 Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and Commerzbank.
Diversification Opportunities for AKKO Invest and Commerzbank
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AKKO and Commerzbank is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG 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 Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of AKKO Invest i.e., AKKO Invest and Commerzbank go up and down completely randomly.
Pair Corralation between AKKO Invest and Commerzbank
Assuming the 90 days trading horizon AKKO Invest Nyrt is expected to generate 1.05 times more return on investment than Commerzbank. However, AKKO Invest is 1.05 times more volatile than Commerzbank AG. It trades about 0.1 of its potential returns per unit of risk. Commerzbank AG is currently generating about -0.35 per unit of risk. If you would invest 32,300 in AKKO Invest Nyrt on September 1, 2024 and sell it today you would earn a total of 1,700 from holding AKKO Invest Nyrt or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.38% |
| Values | Daily Returns |
AKKO Invest Nyrt vs. Commerzbank AG
Performance |
| Timeline |
| AKKO Invest Nyrt |
| Commerzbank AG |
AKKO Invest and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKKO Invest and Commerzbank
The main advantage of trading using opposite AKKO Invest and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank's long position.| AKKO Invest vs. NordTelekom Telecommunications Service | AKKO Invest vs. Delta Technologies Nyrt | AKKO Invest vs. Nutex Investments PLC |
| Commerzbank vs. OTP Bank Nyrt | Commerzbank vs. OPUS GLOBAL Nyrt | Commerzbank vs. Raba Jarmuipari Holding | Commerzbank vs. Delta Technologies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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