Correlation Between International Consolidated and Aker BP
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and Aker BP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Companies and Aker BP ASA, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of Aker BP. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Aker BP.
Diversification Opportunities for International Consolidated and Aker BP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Aker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Com 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 International Consolidated 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 International Consolidated Companies 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 International Consolidated i.e., International Consolidated and Aker BP go up and down completely randomly.
Pair Corralation between International Consolidated and Aker BP
If you would invest 3.00 in International Consolidated Companies on October 24, 2024 and sell it today you would earn a total of 2.25 from holding International Consolidated Companies or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
International Consolidated Com vs. Aker BP ASA
Performance |
| Timeline |
| International Consolidated |
| Aker BP ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
International Consolidated and Aker BP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Aker BP
The main advantage of trading using opposite International Consolidated and Aker BP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.| International Consolidated vs. Frontera Group | International Consolidated vs. All American Pet | International Consolidated vs. XCPCNL Business Services | International Consolidated vs. Aramark Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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