Correlation Between Akastor ASA and Us Energy
Can any of the company-specific risk be diversified away by investing in both Akastor ASA and Us Energy 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 Us Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akastor ASA and Us Energy Initiative, you can compare the effects of market volatilities on Akastor ASA and Us Energy 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 Us Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akastor ASA and Us Energy.
Diversification Opportunities for Akastor ASA and Us Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akastor and USEI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akastor ASA and Us Energy Initiative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Energy Initiative 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 Us Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Energy Initiative has no effect on the direction of Akastor ASA i.e., Akastor ASA and Us Energy go up and down completely randomly.
Pair Corralation between Akastor ASA and Us Energy
Assuming the 90 days horizon Akastor ASA is expected to generate 36.88 times less return on investment than Us Energy. But when comparing it to its historical volatility, Akastor ASA is 38.56 times less risky than Us Energy. It trades about 0.06 of its potential returns per unit of risk. Us Energy Initiative is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Us Energy Initiative on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Us Energy Initiative or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akastor ASA vs. Us Energy Initiative
Performance |
| Timeline |
| Akastor ASA |
| Us Energy Initiative |
Akastor ASA and Us Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akastor ASA and Us Energy
The main advantage of trading using opposite Akastor ASA and Us Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akastor ASA position performs unexpectedly, Us Energy 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 Us Energy will offset losses from the drop in Us Energy's long position.| Akastor ASA vs. Calfrac Well Services | Akastor ASA vs. Auri Inc | Akastor ASA vs. Us Energy Initiative | Akastor ASA vs. Greenway Technologies |
| Us Energy vs. Imd Companies | Us Energy vs. Protek Capital | Us Energy vs. Amazonas Florestal | Us Energy vs. Trans Global Grp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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