Correlation Between Aker Solutions and Masoval AS
Can any of the company-specific risk be diversified away by investing in both Aker Solutions and Masoval AS 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 Aker Solutions and Masoval AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Solutions ASA and Masoval AS, you can compare the effects of market volatilities on Aker Solutions and Masoval AS 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 Aker Solutions with a short position of Masoval AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Solutions and Masoval AS.
Diversification Opportunities for Aker Solutions and Masoval AS
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aker and Masoval is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aker Solutions ASA and Masoval AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masoval AS and Aker Solutions 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 Aker Solutions ASA are associated (or correlated) with Masoval AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masoval AS has no effect on the direction of Aker Solutions i.e., Aker Solutions and Masoval AS go up and down completely randomly.
Pair Corralation between Aker Solutions and Masoval AS
Assuming the 90 days trading horizon Aker Solutions ASA is expected to under-perform the Masoval AS. But the stock apears to be less risky and, when comparing its historical volatility, Aker Solutions ASA is 1.31 times less risky than Masoval AS. The stock trades about -0.04 of its potential returns per unit of risk. The Masoval AS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,750 in Masoval AS on November 2, 2024 and sell it today you would earn a total of 150.00 from holding Masoval AS or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Solutions ASA vs. Masoval AS
Performance |
| Timeline |
| Aker Solutions ASA |
| Masoval AS |
Aker Solutions and Masoval AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Solutions and Masoval AS
The main advantage of trading using opposite Aker Solutions and Masoval AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Solutions position performs unexpectedly, Masoval AS 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 Masoval AS will offset losses from the drop in Masoval AS's long position.| Aker Solutions vs. Subsea 7 SA | Aker Solutions vs. Aker ASA | Aker Solutions vs. Dno ASA | Aker Solutions vs. Aker Carbon Capture |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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