Correlation Between Ackroo and Agent Information

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

By analyzing existing cross correlation between Ackroo Inc and Agent Information Software, you can compare the effects of market volatilities on Ackroo and Agent Information 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 Ackroo with a short position of Agent Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackroo and Agent Information.

Diversification Opportunities for Ackroo and Agent Information

-0.36

Correlation Coefficient

Ackroo  Agent Information

Very good diversification

The 3 months correlation between Ackroo and Agent is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ackroo Inc and Agent Information Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agent Information and Ackroo 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 Ackroo Inc are associated (or correlated) with Agent Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agent Information has no effect on the direction of Ackroo i.e., Ackroo and Agent Information go up and down completely randomly.

Pair Corralation between Ackroo and Agent Information

Assuming the 90 days horizon Ackroo Inc is expected to generate 1.37 times more return on investment than Agent Information. However, Ackroo is 1.37 times more volatile than Agent Information Software. It trades about 0.1 of its potential returns per unit of risk. Agent Information Software is currently generating about -0.06 per unit of risk. If you would invest  9.10  in Ackroo Inc on November 28, 2024 and sell it today you would earn a total of  1.90  from holding Ackroo Inc or generate 20.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Ackroo Inc  vs.  Agent Information Software

Ackroo Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Ackroo reported solid returns over the last few months and may actually be approaching a breakup point.

Agent Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agent Information Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Ackroo and Agent Information

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

The idea behind Ackroo Inc and Agent Information Software 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.