Correlation Between Bakkt Holdings and Aquafil SpA
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and Aquafil SpA 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 Bakkt Holdings and Aquafil SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakkt Holdings and Aquafil SpA, you can compare the effects of market volatilities on Bakkt Holdings and Aquafil SpA 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 Bakkt Holdings with a short position of Aquafil SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and Aquafil SpA.
Diversification Opportunities for Bakkt Holdings and Aquafil SpA
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bakkt and Aquafil is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings and Aquafil SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquafil SpA and Bakkt 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 Bakkt Holdings are associated (or correlated) with Aquafil SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquafil SpA has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Aquafil SpA go up and down completely randomly.
Pair Corralation between Bakkt Holdings and Aquafil SpA
If you would invest 130.00 in Aquafil SpA on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Aquafil SpA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakkt Holdings vs. Aquafil SpA
Performance |
| Timeline |
| Bakkt Holdings |
| Aquafil SpA |
Bakkt Holdings and Aquafil SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakkt Holdings and Aquafil SpA
The main advantage of trading using opposite Bakkt Holdings and Aquafil SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, Aquafil SpA 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 Aquafil SpA will offset losses from the drop in Aquafil SpA's long position.| Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. GigaCloud Technology Class | Bakkt Holdings vs. Pagaya Technologies |
| Aquafil SpA vs. United States Steel | Aquafil SpA vs. Nippon Steel Corp | Aquafil SpA vs. Delek Logistics Partners | Aquafil SpA vs. Corning Incorporated |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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