Correlation Between Aker ASA and China Oilfield
Can any of the company-specific risk be diversified away by investing in both Aker ASA and China Oilfield 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 China Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker ASA and China Oilfield Services, you can compare the effects of market volatilities on Aker ASA and China Oilfield 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 China Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker ASA and China Oilfield.
Diversification Opportunities for Aker ASA and China Oilfield
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aker and China is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aker ASA and China Oilfield Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Oilfield Services 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 China Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Oilfield Services has no effect on the direction of Aker ASA i.e., Aker ASA and China Oilfield go up and down completely randomly.
Pair Corralation between Aker ASA and China Oilfield
If you would invest 3,995 in Aker ASA on January 26, 2024 and sell it today you would earn a total of 1,805 from holding Aker ASA or generate 45.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aker ASA vs. China Oilfield Services
Performance |
Timeline |
Aker ASA |
China Oilfield Services |
Aker ASA and China Oilfield Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aker ASA and China Oilfield
The main advantage of trading using opposite Aker ASA and China Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker ASA position performs unexpectedly, China Oilfield 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 China Oilfield will offset losses from the drop in China Oilfield's long position.Aker ASA vs. Grupo Bimbo SAB | Aker ASA vs. Grupo Financiero Inbursa | Aker ASA vs. Arca Continental SAB | Aker ASA vs. Becle SA de |
China Oilfield vs. Fiserv Inc | China Oilfield vs. Schlumberger NV | China Oilfield vs. Halliburton | China Oilfield vs. Baker Hughes Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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