Correlation Between Akerna Corp and International General
Can any of the company-specific risk be diversified away by investing in both Akerna Corp and International General 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 Akerna Corp and International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akerna Corp and International General Insurance, you can compare the effects of market volatilities on Akerna Corp and International General 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 Akerna Corp with a short position of International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akerna Corp and International General.
Diversification Opportunities for Akerna Corp and International General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akerna and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akerna Corp and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General and Akerna Corp 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 Akerna Corp are associated (or correlated) with International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Akerna Corp i.e., Akerna Corp and International General go up and down completely randomly.
Pair Corralation between Akerna Corp and International General
If you would invest (100.00) in International General Insurance on January 22, 2025 and sell it today you would earn a total of 100.00 from holding International General Insurance or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akerna Corp vs. International General Insuranc
Performance |
| Timeline |
| Akerna Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| International General |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Akerna Corp and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akerna Corp and International General
The main advantage of trading using opposite Akerna Corp and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akerna Corp position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.The idea behind Akerna Corp and International General Insurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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