Correlation Between LongFin Corp and Ackroo
Can any of the company-specific risk be diversified away by investing in both LongFin Corp 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 LongFin Corp and Ackroo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LongFin Corp and Ackroo Inc, you can compare the effects of market volatilities on LongFin Corp 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 LongFin Corp with a short position of Ackroo. Check out your portfolio center. Please also check ongoing floating volatility patterns of LongFin Corp and Ackroo.
Diversification Opportunities for LongFin Corp and Ackroo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LongFin and Ackroo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LongFin Corp and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and LongFin 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 LongFin Corp 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 LongFin Corp i.e., LongFin Corp and Ackroo go up and down completely randomly.
Pair Corralation between LongFin Corp and Ackroo
If you would invest 5.60 in Ackroo Inc on September 2, 2024 and sell it today you would earn a total of 3.50 from holding Ackroo Inc or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
LongFin Corp vs. Ackroo Inc
Performance |
| Timeline |
| LongFin Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ackroo Inc |
LongFin Corp and Ackroo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LongFin Corp and Ackroo
The main advantage of trading using opposite LongFin Corp and Ackroo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LongFin Corp 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.| LongFin Corp vs. Ackroo Inc | LongFin Corp vs. CurrentC Power | LongFin Corp vs. Agent Information Software | LongFin Corp vs. Paycor HCM |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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