Correlation Between Akoustis Technologies and Palfinger
Can any of the company-specific risk be diversified away by investing in both Akoustis Technologies and Palfinger 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 Akoustis Technologies and Palfinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoustis Technologies and Palfinger AG, you can compare the effects of market volatilities on Akoustis Technologies and Palfinger 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 Akoustis Technologies with a short position of Palfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoustis Technologies and Palfinger.
Diversification Opportunities for Akoustis Technologies and Palfinger
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akoustis and Palfinger is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Akoustis Technologies and Palfinger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palfinger AG and Akoustis Technologies 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 Akoustis Technologies are associated (or correlated) with Palfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palfinger AG has no effect on the direction of Akoustis Technologies i.e., Akoustis Technologies and Palfinger go up and down completely randomly.
Pair Corralation between Akoustis Technologies and Palfinger
Given the investment horizon of 90 days Akoustis Technologies is expected to under-perform the Palfinger. In addition to that, Akoustis Technologies is 6.46 times more volatile than Palfinger AG. It trades about -0.03 of its total potential returns per unit of risk. Palfinger AG is currently generating about 0.01 per unit of volatility. If you would invest 2,112 in Palfinger AG on August 30, 2024 and sell it today you would earn a total of 88.00 from holding Palfinger AG or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Akoustis Technologies vs. Palfinger AG
Performance |
| Timeline |
| Akoustis Technologies |
| Palfinger AG |
Akoustis Technologies and Palfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akoustis Technologies and Palfinger
The main advantage of trading using opposite Akoustis Technologies and Palfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoustis Technologies position performs unexpectedly, Palfinger 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 Palfinger will offset losses from the drop in Palfinger's long position.| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies vs. Gilat Satellite Networks |
| Palfinger vs. Buhler Industries | Palfinger vs. Ag Growth International | Palfinger vs. Grow Solutions Holdings | Palfinger vs. American Premium Water |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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