Correlation Between AKKO Invest and Nutex Investments
Can any of the company-specific risk be diversified away by investing in both AKKO Invest and Nutex Investments 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 Nutex Investments 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 Nutex Investments PLC, you can compare the effects of market volatilities on AKKO Invest and Nutex Investments 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 Nutex Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and Nutex Investments.
Diversification Opportunities for AKKO Invest and Nutex Investments
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AKKO and Nutex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and Nutex Investments PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Investments PLC 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 Nutex Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Investments PLC has no effect on the direction of AKKO Invest i.e., AKKO Invest and Nutex Investments go up and down completely randomly.
Pair Corralation between AKKO Invest and Nutex Investments
Assuming the 90 days trading horizon AKKO Invest Nyrt is expected to generate 2.5 times more return on investment than Nutex Investments. However, AKKO Invest is 2.5 times more volatile than Nutex Investments PLC. It trades about 0.13 of its potential returns per unit of risk. Nutex Investments PLC is currently generating about -0.15 per unit of risk. If you would invest 32,300 in AKKO Invest Nyrt on August 27, 2024 and sell it today you would earn a total of 2,200 from holding AKKO Invest Nyrt or generate 6.81% 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. Nutex Investments PLC
Performance |
| Timeline |
| AKKO Invest Nyrt |
| Nutex Investments PLC |
AKKO Invest and Nutex Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKKO Invest and Nutex Investments
The main advantage of trading using opposite AKKO Invest and Nutex Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, Nutex Investments 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 Nutex Investments will offset losses from the drop in Nutex Investments' long position.| AKKO Invest vs. NordTelekom Telecommunications Service | AKKO Invest vs. Nutex Investments PLC | AKKO Invest vs. OTP Bank Nyrt |
| Nutex Investments vs. NordTelekom Telecommunications Service | Nutex Investments vs. CIG Pannonia Life | Nutex Investments vs. Infineon Technologies AG | Nutex Investments vs. AKKO Invest 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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