Correlation Between DOMINION and AKITA Drilling
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By analyzing existing cross correlation between DOMINION RES INC and AKITA Drilling, you can compare the effects of market volatilities on DOMINION and AKITA Drilling 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 DOMINION with a short position of AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of DOMINION and AKITA Drilling.
Diversification Opportunities for DOMINION and AKITA Drilling
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DOMINION and AKITA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DOMINION RES INC and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling and DOMINION 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 DOMINION RES INC are associated (or correlated) with AKITA Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKITA Drilling has no effect on the direction of DOMINION i.e., DOMINION and AKITA Drilling go up and down completely randomly.
Pair Corralation between DOMINION and AKITA Drilling
Assuming the 90 days trading horizon DOMINION RES INC is expected to generate 0.54 times more return on investment than AKITA Drilling. However, DOMINION RES INC is 1.84 times less risky than AKITA Drilling. It trades about -0.04 of its potential returns per unit of risk. AKITA Drilling is currently generating about -0.05 per unit of risk. If you would invest 9,995 in DOMINION RES INC on September 12, 2024 and sell it today you would lose (61.00) from holding DOMINION RES INC or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DOMINION RES INC vs. AKITA Drilling
Performance |
| Timeline |
| DOMINION RES INC |
| AKITA Drilling |
DOMINION and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DOMINION and AKITA Drilling
The main advantage of trading using opposite DOMINION and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DOMINION position performs unexpectedly, AKITA Drilling 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 AKITA Drilling will offset losses from the drop in AKITA Drilling's long position.| DOMINION vs. United Microelectronics | DOMINION vs. Dolphin Entertainment | DOMINION vs. Coda Octopus Group | DOMINION vs. BOS Better Online |
| AKITA Drilling vs. POSCO Holdings | AKITA Drilling vs. Schweizerische Nationalbank | AKITA Drilling vs. Berkshire Hathaway | AKITA Drilling vs. Berkshire Hathaway |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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