Correlation Between AKITA Drilling and Mobile Infrastructure
Can any of the company-specific risk be diversified away by investing in both AKITA Drilling and Mobile Infrastructure 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 AKITA Drilling and Mobile Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKITA Drilling and Mobile Infrastructure, you can compare the effects of market volatilities on AKITA Drilling and Mobile Infrastructure 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 AKITA Drilling with a short position of Mobile Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and Mobile Infrastructure.
Diversification Opportunities for AKITA Drilling and Mobile Infrastructure
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between AKITA and Mobile is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and Mobile Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Infrastructure and AKITA Drilling 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 AKITA Drilling are associated (or correlated) with Mobile Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Infrastructure has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and Mobile Infrastructure go up and down completely randomly.
Pair Corralation between AKITA Drilling and Mobile Infrastructure
Assuming the 90 days horizon AKITA Drilling is expected to under-perform the Mobile Infrastructure. But the pink sheet apears to be less risky and, when comparing its historical volatility, AKITA Drilling is 3.73 times less risky than Mobile Infrastructure. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Mobile Infrastructure is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 294.00 in Mobile Infrastructure on September 15, 2024 and sell it today you would earn a total of 81.00 from holding Mobile Infrastructure or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AKITA Drilling vs. Mobile Infrastructure
Performance |
| Timeline |
| AKITA Drilling |
| Mobile Infrastructure |
AKITA Drilling and Mobile Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKITA Drilling and Mobile Infrastructure
The main advantage of trading using opposite AKITA Drilling and Mobile Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling position performs unexpectedly, Mobile Infrastructure 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 Mobile Infrastructure will offset losses from the drop in Mobile Infrastructure's long position.| AKITA Drilling vs. Cathedral Energy Services | AKITA Drilling vs. Vantage Drilling International | AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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