Correlation Between Aker Solutions and Best Buy
Can any of the company-specific risk be diversified away by investing in both Aker Solutions and Best Buy 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 Solutions and Best Buy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Solutions ASA and Best Buy Co, you can compare the effects of market volatilities on Aker Solutions and Best Buy 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 Solutions with a short position of Best Buy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Solutions and Best Buy.
Diversification Opportunities for Aker Solutions and Best Buy
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aker and Best is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aker Solutions ASA and Best Buy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and Aker Solutions 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 Solutions ASA are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of Aker Solutions i.e., Aker Solutions and Best Buy go up and down completely randomly.
Pair Corralation between Aker Solutions and Best Buy
Assuming the 90 days trading horizon Aker Solutions ASA is expected to generate 1.31 times more return on investment than Best Buy. However, Aker Solutions is 1.31 times more volatile than Best Buy Co. It trades about 0.0 of its potential returns per unit of risk. Best Buy Co is currently generating about 0.0 per unit of risk. If you would invest 4,067 in Aker Solutions ASA on January 24, 2024 and sell it today you would lose (251.00) from holding Aker Solutions ASA or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.31% |
| Values | Daily Returns |
Aker Solutions ASA vs. Best Buy Co
Performance |
| Timeline |
| Aker Solutions ASA |
| Best Buy |
Aker Solutions and Best Buy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Solutions and Best Buy
The main advantage of trading using opposite Aker Solutions and Best Buy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Solutions position performs unexpectedly, Best Buy 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 Best Buy will offset losses from the drop in Best Buy's long position.| Aker Solutions vs. Aker ASA | Aker Solutions vs. Subsea 7 SA | Aker Solutions vs. TGS NOPEC Geophysical | Aker Solutions vs. PGS ASA |
| Best Buy vs. Target | Best Buy vs. Walmart | Best Buy vs. Aquagold International | Best Buy vs. Thrivent High Yield |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |