Correlation Between GENERAL and AKITA Drilling
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By analyzing existing cross correlation between GENERAL DYNAMICS P and AKITA Drilling, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and AKITA Drilling.
Diversification Opportunities for GENERAL and AKITA Drilling
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GENERAL and AKITA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling and GENERAL 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 GENERAL DYNAMICS P 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 GENERAL i.e., GENERAL and AKITA Drilling go up and down completely randomly.
Pair Corralation between GENERAL and AKITA Drilling
Assuming the 90 days trading horizon GENERAL DYNAMICS P is expected to generate 0.03 times more return on investment than AKITA Drilling. However, GENERAL DYNAMICS P is 29.81 times less risky than AKITA Drilling. It trades about 0.08 of its potential returns per unit of risk. AKITA Drilling is currently generating about -0.1 per unit of risk. If you would invest 9,968 in GENERAL DYNAMICS P on December 1, 2024 and sell it today you would earn a total of 11.00 from holding GENERAL DYNAMICS P or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. AKITA Drilling
Performance |
| Timeline |
| GENERAL DYNAMICS P |
| AKITA Drilling |
GENERAL and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and AKITA Drilling
The main advantage of trading using opposite GENERAL and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Sealed Air | GENERAL vs. Quaker Chemical | GENERAL vs. Balchem | GENERAL vs. CF Industries Holdings |
| AKITA Drilling vs. Cathedral Energy Services | AKITA Drilling vs. Vantage Drilling International | AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc |
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 Stocks Directory module to find actively traded stocks across global markets.
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