Correlation Between Hunter Group and Aker BP
Can any of the company-specific risk be diversified away by investing in both Hunter Group 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 Hunter Group and Aker BP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Group ASA and Aker BP ASA, you can compare the effects of market volatilities on Hunter Group 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 Hunter Group with a short position of Aker BP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Group and Aker BP.
Diversification Opportunities for Hunter Group and Aker BP
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hunter and Aker is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Group ASA 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 Hunter Group 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 Hunter Group ASA 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 Hunter Group i.e., Hunter Group and Aker BP go up and down completely randomly.
Pair Corralation between Hunter Group and Aker BP
Assuming the 90 days trading horizon Hunter Group ASA is expected to under-perform the Aker BP. In addition to that, Hunter Group is 5.47 times more volatile than Aker BP ASA. It trades about -0.22 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 22,930 in Aker BP ASA on September 5, 2024 and sell it today you would earn a total of 120.00 from holding Aker BP ASA or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Group ASA vs. Aker BP ASA
Performance |
| Timeline |
| Hunter Group ASA |
| Aker BP ASA |
Hunter Group and Aker BP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Group and Aker BP
The main advantage of trading using opposite Hunter Group and Aker BP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Group 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.| Hunter Group vs. Okeanis Eco Tankers | Hunter Group vs. Frontline | Hunter Group vs. BW LPG | Hunter Group vs. FLEX LNG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |