Correlation Between Aker ASA and Intel
Can any of the company-specific risk be diversified away by investing in both Aker ASA and Intel 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 Aker ASA and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker ASA and Intel, you can compare the effects of market volatilities on Aker ASA and Intel 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 Aker ASA with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker ASA and Intel.
Diversification Opportunities for Aker ASA and Intel
Pay attention - limited upside
The 3 months correlation between Aker and Intel is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aker ASA and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Aker ASA 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 Aker ASA are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Aker ASA i.e., Aker ASA and Intel go up and down completely randomly.
Pair Corralation between Aker ASA and Intel
Assuming the 90 days trading horizon Aker ASA is expected to generate 0.49 times more return on investment than Intel. However, Aker ASA is 2.04 times less risky than Intel. It trades about 0.11 of its potential returns per unit of risk. Intel is currently generating about -0.22 per unit of risk. If you would invest 58,285 in Aker ASA on February 13, 2024 and sell it today you would earn a total of 4,815 from holding Aker ASA or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aker ASA vs. Intel
Performance |
| Timeline |
| Aker ASA |
| Intel |
Aker ASA and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker ASA and Intel
The main advantage of trading using opposite Aker ASA and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker ASA position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Aker ASA vs. Storebrand ASA | Aker ASA vs. Aker Solutions ASA | Aker ASA vs. DnB ASA | Aker ASA vs. Orkla 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |