Correlation Between NYSE Composite and Aker ASA
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Aker ASA 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 NYSE Composite and Aker ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Aker ASA, you can compare the effects of market volatilities on NYSE Composite and Aker ASA 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 NYSE Composite with a short position of Aker ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Aker ASA.
Diversification Opportunities for NYSE Composite and Aker ASA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Aker is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Aker ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker ASA and NYSE Composite 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 NYSE Composite are associated (or correlated) with Aker ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker ASA has no effect on the direction of NYSE Composite i.e., NYSE Composite and Aker ASA go up and down completely randomly.
Pair Corralation between NYSE Composite and Aker ASA
If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Aker ASA
Performance |
| Timeline |
NYSE Composite and Aker ASA Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Aker ASA
Pair trading matchups for Aker ASA
Pair Trading with NYSE Composite and Aker ASA
The main advantage of trading using opposite NYSE Composite and Aker ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Aker ASA 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 ASA will offset losses from the drop in Aker ASA's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Aker ASA vs. BCB Bancorp | Aker ASA vs. LithiumBank Resources Corp | Aker ASA vs. FiscalNote Holdings | Aker ASA vs. FactSet Research Systems |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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