Correlation Between AutoStore Holdings and Aker BP
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Aker BP 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 AutoStore Holdings and Aker BP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Aker BP ASA, you can compare the effects of market volatilities on AutoStore Holdings and Aker BP 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 AutoStore Holdings with a short position of Aker BP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Aker BP.
Diversification Opportunities for AutoStore Holdings and Aker BP
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AutoStore and Aker is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Aker BP ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker BP ASA and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Aker BP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker BP ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Aker BP go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Aker BP
Assuming the 90 days trading horizon AutoStore Holdings is expected to under-perform the Aker BP. In addition to that, AutoStore Holdings is 2.18 times more volatile than Aker BP ASA. It trades about -0.03 of its total potential returns per unit of risk. Aker BP ASA is currently generating about 0.02 per unit of volatility. If you would invest 22,123 in Aker BP ASA on November 27, 2024 and sell it today you would earn a total of 1,407 from holding Aker BP ASA or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Aker BP ASA
Performance |
| Timeline |
| AutoStore Holdings |
| Aker BP ASA |
AutoStore Holdings and Aker BP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Aker BP
The main advantage of trading using opposite AutoStore Holdings and Aker BP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Aker BP 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 Aker BP will offset losses from the drop in Aker BP's long position.| AutoStore Holdings vs. Nordic Semiconductor ASA | AutoStore Holdings vs. Aker BP ASA | AutoStore Holdings vs. SalMar ASA | AutoStore Holdings vs. Scatec Solar OL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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