Correlation Between AKKO Invest and Nutex Investments

Can any of the company-specific risk be diversified away by investing in both AKKO Invest and Nutex Investments 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 AKKO Invest and Nutex Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AKKO Invest Nyrt and Nutex Investments PLC, you can compare the effects of market volatilities on AKKO Invest and Nutex Investments 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 AKKO Invest with a short position of Nutex Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and Nutex Investments.

Diversification Opportunities for AKKO Invest and Nutex Investments

-0.38

Correlation Coefficient

AKKO Invest  Nutex Investments

Very good diversification

The 3 months correlation between AKKO and Nutex is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and Nutex Investments PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Investments PLC and AKKO Invest 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 AKKO Invest Nyrt are associated (or correlated) with Nutex Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Investments PLC has no effect on the direction of AKKO Invest i.e., AKKO Invest and Nutex Investments go up and down completely randomly.

Pair Corralation between AKKO Invest and Nutex Investments

Assuming the 90 days trading horizon AKKO Invest Nyrt is expected to under-perform the Nutex Investments. But the stock apears to be less risky and, when comparing its historical volatility, AKKO Invest Nyrt is 1.16 times less risky than Nutex Investments. The stock trades about -0.04 of its potential returns per unit of risk. The Nutex Investments PLC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,220  in Nutex Investments PLC on November 28, 2024 and sell it today you would lose (10.00) from holding Nutex Investments PLC or give up 0.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AKKO Invest Nyrt  vs.  Nutex Investments PLC

AKKO Invest Nyrt

Risk-Adjusted Performance

Very Weak

Over the last 90 days AKKO Invest Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AKKO Invest is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Nutex Investments PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nutex Investments PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Nutex Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AKKO Invest and Nutex Investments

The main advantage of trading using opposite AKKO Invest and Nutex Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, Nutex Investments 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 Nutex Investments will offset losses from the drop in Nutex Investments' long position.

The idea behind AKKO Invest Nyrt and Nutex Investments PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.