Correlation Between Pexip Holding and Aker Horizons
Can any of the company-specific risk be diversified away by investing in both Pexip Holding and Aker Horizons 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 Pexip Holding and Aker Horizons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pexip Holding ASA and Aker Horizons AS, you can compare the effects of market volatilities on Pexip Holding and Aker Horizons 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 Pexip Holding with a short position of Aker Horizons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pexip Holding and Aker Horizons.
Diversification Opportunities for Pexip Holding and Aker Horizons
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pexip and Aker is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pexip Holding ASA and Aker Horizons AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Horizons AS and Pexip Holding 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 Pexip Holding ASA are associated (or correlated) with Aker Horizons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Horizons AS has no effect on the direction of Pexip Holding i.e., Pexip Holding and Aker Horizons go up and down completely randomly.
Pair Corralation between Pexip Holding and Aker Horizons
Assuming the 90 days trading horizon Pexip Holding ASA is expected to generate 0.51 times more return on investment than Aker Horizons. However, Pexip Holding ASA is 1.97 times less risky than Aker Horizons. It trades about 0.14 of its potential returns per unit of risk. Aker Horizons AS is currently generating about -0.08 per unit of risk. If you would invest 3,010 in Pexip Holding ASA on October 21, 2024 and sell it today you would earn a total of 1,190 from holding Pexip Holding ASA or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pexip Holding ASA vs. Aker Horizons AS
Performance |
| Timeline |
| Pexip Holding ASA |
| Aker Horizons AS |
Pexip Holding and Aker Horizons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pexip Holding and Aker Horizons
The main advantage of trading using opposite Pexip Holding and Aker Horizons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pexip Holding position performs unexpectedly, Aker Horizons 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 Horizons will offset losses from the drop in Aker Horizons' long position.| Pexip Holding vs. XXL ASA | Pexip Holding vs. Nordic Semiconductor ASA | Pexip Holding vs. Aker Horizons AS | Pexip Holding vs. Atlantic Sapphire As |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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