Correlation Between AKITA Drilling and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both AKITA Drilling and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKITA Drilling and Doubledown Interactive Co, you can compare the effects of market volatilities on AKITA Drilling and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and Doubledown Interactive.
Diversification Opportunities for AKITA Drilling and Doubledown Interactive
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AKITA and Doubledown is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and Doubledown Interactive go up and down completely randomly.
Pair Corralation between AKITA Drilling and Doubledown Interactive
Assuming the 90 days horizon AKITA Drilling is expected to generate 1.3 times more return on investment than Doubledown Interactive. However, AKITA Drilling is 1.3 times more volatile than Doubledown Interactive Co. It trades about 0.14 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.04 per unit of risk. If you would invest 111.00 in AKITA Drilling on January 13, 2025 and sell it today you would earn a total of 11.00 from holding AKITA Drilling or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AKITA Drilling vs. Doubledown Interactive Co
Performance |
| Timeline |
| AKITA Drilling |
| Doubledown Interactive |
AKITA Drilling and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKITA Drilling and Doubledown Interactive
The main advantage of trading using opposite AKITA Drilling and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive'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 |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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