Correlation Between Wallenius Wilhelmsen and Aker Horizons
Can any of the company-specific risk be diversified away by investing in both Wallenius Wilhelmsen 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 Wallenius Wilhelmsen and Aker Horizons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wallenius Wilhelmsen Logistics and Aker Horizons AS, you can compare the effects of market volatilities on Wallenius Wilhelmsen 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 Wallenius Wilhelmsen with a short position of Aker Horizons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallenius Wilhelmsen and Aker Horizons.
Diversification Opportunities for Wallenius Wilhelmsen and Aker Horizons
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wallenius and Aker is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wallenius Wilhelmsen Logistics 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 Wallenius Wilhelmsen 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 Wallenius Wilhelmsen Logistics 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 Wallenius Wilhelmsen i.e., Wallenius Wilhelmsen and Aker Horizons go up and down completely randomly.
Pair Corralation between Wallenius Wilhelmsen and Aker Horizons
Assuming the 90 days trading horizon Wallenius Wilhelmsen Logistics is expected to generate 0.5 times more return on investment than Aker Horizons. However, Wallenius Wilhelmsen Logistics is 2.01 times less risky than Aker Horizons. It trades about 0.0 of its potential returns per unit of risk. Aker Horizons AS is currently generating about -0.21 per unit of risk. If you would invest 10,820 in Wallenius Wilhelmsen Logistics on September 1, 2024 and sell it today you would lose (70.00) from holding Wallenius Wilhelmsen Logistics or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wallenius Wilhelmsen Logistics vs. Aker Horizons AS
Performance |
| Timeline |
| Wallenius Wilhelmsen |
| Aker Horizons AS |
Wallenius Wilhelmsen and Aker Horizons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wallenius Wilhelmsen and Aker Horizons
The main advantage of trading using opposite Wallenius Wilhelmsen and Aker Horizons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallenius Wilhelmsen 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.| Wallenius Wilhelmsen vs. Hoegh Autoliners ASA | Wallenius Wilhelmsen vs. Stolt Nielsen Limited | Wallenius Wilhelmsen vs. MPC Container Ships | Wallenius Wilhelmsen vs. Aker BP ASA |
| Aker Horizons vs. Aker Carbon Capture | Aker Horizons vs. REC Silicon ASA | Aker Horizons vs. Aker Solutions ASA | Aker Horizons vs. Aker BP ASA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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