Correlation Between Arcticzymes Technologies and Aker Carbon
Can any of the company-specific risk be diversified away by investing in both Arcticzymes Technologies and Aker Carbon 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 Arcticzymes Technologies and Aker Carbon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcticzymes Technologies ASA and Aker Carbon Capture, you can compare the effects of market volatilities on Arcticzymes Technologies and Aker Carbon 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 Arcticzymes Technologies with a short position of Aker Carbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcticzymes Technologies and Aker Carbon.
Diversification Opportunities for Arcticzymes Technologies and Aker Carbon
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arcticzymes and Aker is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Arcticzymes Technologies ASA and Aker Carbon Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Carbon Capture and Arcticzymes 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 Arcticzymes Technologies ASA are associated (or correlated) with Aker Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Carbon Capture has no effect on the direction of Arcticzymes Technologies i.e., Arcticzymes Technologies and Aker Carbon go up and down completely randomly.
Pair Corralation between Arcticzymes Technologies and Aker Carbon
Assuming the 90 days trading horizon Arcticzymes Technologies ASA is expected to under-perform the Aker Carbon. In addition to that, Arcticzymes Technologies is 2.17 times more volatile than Aker Carbon Capture. It trades about -0.31 of its total potential returns per unit of risk. Aker Carbon Capture is currently generating about -0.04 per unit of volatility. If you would invest 610.00 in Aker Carbon Capture on September 1, 2024 and sell it today you would lose (13.00) from holding Aker Carbon Capture or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arcticzymes Technologies ASA vs. Aker Carbon Capture
Performance |
| Timeline |
| Arcticzymes Technologies |
| Aker Carbon Capture |
Arcticzymes Technologies and Aker Carbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcticzymes Technologies and Aker Carbon
The main advantage of trading using opposite Arcticzymes Technologies and Aker Carbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcticzymes Technologies position performs unexpectedly, Aker Carbon 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 Carbon will offset losses from the drop in Aker Carbon's long position.| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron ASA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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