Correlation Between Akastor ASA and TechnipFMC PLC
Can any of the company-specific risk be diversified away by investing in both Akastor ASA and TechnipFMC PLC 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 Akastor ASA and TechnipFMC PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akastor ASA and TechnipFMC PLC, you can compare the effects of market volatilities on Akastor ASA and TechnipFMC PLC 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 Akastor ASA with a short position of TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akastor ASA and TechnipFMC PLC.
Diversification Opportunities for Akastor ASA and TechnipFMC PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akastor and TechnipFMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akastor ASA and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC and Akastor ASA 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 Akastor ASA are associated (or correlated) with TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of Akastor ASA i.e., Akastor ASA and TechnipFMC PLC go up and down completely randomly.
Pair Corralation between Akastor ASA and TechnipFMC PLC
If you would invest 2,623 in TechnipFMC PLC on September 2, 2024 and sell it today you would earn a total of 514.00 from holding TechnipFMC PLC or generate 19.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akastor ASA vs. TechnipFMC PLC
Performance |
| Timeline |
| Akastor ASA |
| TechnipFMC PLC |
Akastor ASA and TechnipFMC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akastor ASA and TechnipFMC PLC
The main advantage of trading using opposite Akastor ASA and TechnipFMC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akastor ASA position performs unexpectedly, TechnipFMC PLC 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 TechnipFMC PLC will offset losses from the drop in TechnipFMC PLC's long position.| Akastor ASA vs. Expro Group Holdings | Akastor ASA vs. ChampionX | Akastor ASA vs. Ranger Energy Services | Akastor ASA vs. Cactus Inc |
| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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