Correlation Between Bitech Technologies and Ackroo
Can any of the company-specific risk be diversified away by investing in both Bitech Technologies and Ackroo 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 Bitech Technologies and Ackroo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitech Technologies and Ackroo Inc, you can compare the effects of market volatilities on Bitech Technologies and Ackroo 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 Bitech Technologies with a short position of Ackroo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitech Technologies and Ackroo.
Diversification Opportunities for Bitech Technologies and Ackroo
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitech and Ackroo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bitech Technologies and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and Bitech 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 Bitech Technologies are associated (or correlated) with Ackroo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackroo Inc has no effect on the direction of Bitech Technologies i.e., Bitech Technologies and Ackroo go up and down completely randomly.
Pair Corralation between Bitech Technologies and Ackroo
Given the investment horizon of 90 days Bitech Technologies is expected to generate 1.56 times more return on investment than Ackroo. However, Bitech Technologies is 1.56 times more volatile than Ackroo Inc. It trades about 0.05 of its potential returns per unit of risk. Ackroo Inc is currently generating about 0.02 per unit of risk. If you would invest 6.50 in Bitech Technologies on September 3, 2024 and sell it today you would earn a total of 0.50 from holding Bitech Technologies or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitech Technologies vs. Ackroo Inc
Performance |
| Timeline |
| Bitech Technologies |
| Ackroo Inc |
Bitech Technologies and Ackroo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitech Technologies and Ackroo
The main advantage of trading using opposite Bitech Technologies and Ackroo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitech Technologies position performs unexpectedly, Ackroo 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 Ackroo will offset losses from the drop in Ackroo's long position.| Bitech Technologies vs. Ackroo Inc | Bitech Technologies vs. CurrentC Power | Bitech Technologies vs. Agent Information Software | Bitech Technologies vs. AnalytixInsight |
| Ackroo vs. CurrentC Power | Ackroo vs. BASE Inc | Ackroo vs. Maxwell Resource | Ackroo vs. Agent Information Software |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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