Correlation Between Wilh Wilhelmsen and Aker Horizons
Can any of the company-specific risk be diversified away by investing in both Wilh 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 Wilh 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 Wilh Wilhelmsen Holding and Aker Horizons AS, you can compare the effects of market volatilities on Wilh 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 Wilh Wilhelmsen with a short position of Aker Horizons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Aker Horizons.
Diversification Opportunities for Wilh Wilhelmsen and Aker Horizons
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wilh and Aker is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding 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 Wilh 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 Wilh Wilhelmsen Holding 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 Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Aker Horizons go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and Aker Horizons
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 0.35 times more return on investment than Aker Horizons. However, Wilh Wilhelmsen Holding is 2.82 times less risky than Aker Horizons. It trades about 0.05 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 38,285 in Wilh Wilhelmsen Holding on September 1, 2024 and sell it today you would earn a total of 615.00 from holding Wilh Wilhelmsen Holding or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wilh Wilhelmsen Holding vs. Aker Horizons AS
Performance |
| Timeline |
| Wilh Wilhelmsen Holding |
| Aker Horizons AS |
Wilh Wilhelmsen and Aker Horizons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilh Wilhelmsen and Aker Horizons
The main advantage of trading using opposite Wilh Wilhelmsen and Aker Horizons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh 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.| Wilh Wilhelmsen vs. Wilh Wilhelmsen Holding | Wilh Wilhelmsen vs. Stolt Nielsen Limited | Wilh Wilhelmsen vs. Veidekke ASA | Wilh Wilhelmsen vs. Odfjell SE |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |