Correlation Between AKITA Drilling and CINCINNATI
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By analyzing existing cross correlation between AKITA Drilling and CINCINNATI FINL P, you can compare the effects of market volatilities on AKITA Drilling and CINCINNATI 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 CINCINNATI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and CINCINNATI.
Diversification Opportunities for AKITA Drilling and CINCINNATI
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AKITA and CINCINNATI is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and CINCINNATI FINL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINCINNATI FINL P 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 CINCINNATI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINCINNATI FINL P has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and CINCINNATI go up and down completely randomly.
Pair Corralation between AKITA Drilling and CINCINNATI
Assuming the 90 days horizon AKITA Drilling is expected to generate 1.02 times more return on investment than CINCINNATI. However, AKITA Drilling is 1.02 times more volatile than CINCINNATI FINL P. It trades about -0.05 of its potential returns per unit of risk. CINCINNATI FINL P is currently generating about -0.07 per unit of risk. If you would invest 117.00 in AKITA Drilling on September 12, 2024 and sell it today you would lose (2.00) from holding AKITA Drilling or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
AKITA Drilling vs. CINCINNATI FINL P
Performance |
| Timeline |
| AKITA Drilling |
| CINCINNATI FINL P |
AKITA Drilling and CINCINNATI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKITA Drilling and CINCINNATI
The main advantage of trading using opposite AKITA Drilling and CINCINNATI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling position performs unexpectedly, CINCINNATI 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 CINCINNATI will offset losses from the drop in CINCINNATI's long position.| AKITA Drilling vs. POSCO Holdings | AKITA Drilling vs. Schweizerische Nationalbank | AKITA Drilling vs. Berkshire Hathaway | AKITA Drilling vs. Berkshire Hathaway |
| CINCINNATI vs. AEP TEX INC | CINCINNATI vs. US BANK NATIONAL | CINCINNATI vs. Recursion Pharmaceuticals | CINCINNATI vs. SoundHound AI |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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