Correlation Between AKITA Drilling and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both AKITA Drilling and Flagstar Bancorp 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 Flagstar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKITA Drilling and Flagstar Bancorp, you can compare the effects of market volatilities on AKITA Drilling and Flagstar Bancorp 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 Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and Flagstar Bancorp.
Diversification Opportunities for AKITA Drilling and Flagstar Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AKITA and Flagstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp 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 Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between AKITA Drilling and Flagstar Bancorp
If you would invest 123.00 in AKITA Drilling on September 12, 2024 and sell it today you would lose (8.00) from holding AKITA Drilling or give up 6.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
AKITA Drilling vs. Flagstar Bancorp
Performance |
| Timeline |
| AKITA Drilling |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AKITA Drilling and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKITA Drilling and Flagstar Bancorp
The main advantage of trading using opposite AKITA Drilling and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| AKITA Drilling vs. POSCO Holdings | AKITA Drilling vs. Schweizerische Nationalbank | AKITA Drilling vs. Berkshire Hathaway | AKITA Drilling vs. Berkshire Hathaway |
| Flagstar Bancorp vs. AKITA Drilling | Flagstar Bancorp vs. NETGEAR | Flagstar Bancorp vs. Iridium Communications | Flagstar Bancorp vs. Monster Beverage Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |