Correlation Between Ackroo and LongFin Corp
Can any of the company-specific risk be diversified away by investing in both Ackroo and LongFin Corp 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 Ackroo and LongFin Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ackroo Inc and LongFin Corp, you can compare the effects of market volatilities on Ackroo and LongFin Corp 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 Ackroo with a short position of LongFin Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackroo and LongFin Corp.
Diversification Opportunities for Ackroo and LongFin Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ackroo and LongFin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ackroo Inc and LongFin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LongFin Corp and Ackroo 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 Ackroo Inc are associated (or correlated) with LongFin Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LongFin Corp has no effect on the direction of Ackroo i.e., Ackroo and LongFin Corp go up and down completely randomly.
Pair Corralation between Ackroo and LongFin Corp
If you would invest 11.00 in Ackroo Inc on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Ackroo Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ackroo Inc vs. LongFin Corp
Performance |
| Timeline |
| Ackroo Inc |
| LongFin Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ackroo and LongFin Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackroo and LongFin Corp
The main advantage of trading using opposite Ackroo and LongFin Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackroo position performs unexpectedly, LongFin Corp 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 LongFin Corp will offset losses from the drop in LongFin Corp's long position.The idea behind Ackroo Inc and LongFin Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| LongFin Corp vs. Ackroo Inc | LongFin Corp vs. CurrentC Power | LongFin Corp vs. Agent Information Software | LongFin Corp vs. Paycor HCM |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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