Correlation Between AKITA Drilling and Aeon

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Can any of the company-specific risk be diversified away by investing in both AKITA Drilling and Aeon 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 AKITA Drilling and Aeon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKITA Drilling and Aeon Co, you can compare the effects of market volatilities on AKITA Drilling and Aeon 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 AKITA Drilling with a short position of Aeon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and Aeon.

Diversification Opportunities for AKITA Drilling and Aeon

AKITAAeonDiversified AwayAKITAAeonDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AKITA and Aeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and Aeon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon and AKITA Drilling 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 AKITA Drilling are associated (or correlated) with Aeon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and Aeon go up and down completely randomly.

Pair Corralation between AKITA Drilling and Aeon

If you would invest  113.00  in AKITA Drilling on October 15, 2024 and sell it today you would earn a total of  8.00  from holding AKITA Drilling or generate 7.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.61%
ValuesDaily Returns

AKITA Drilling  vs.  Aeon Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -4-202468
JavaScript chart by amCharts 3.21.15AKTAF AONNF
       Timeline  
AKITA Drilling 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in AKITA Drilling are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AKITA Drilling may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.061.081.11.121.141.161.181.21.22
Aeon 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aeon Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aeon is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AKITA Drilling and Aeon Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.35-4.01-2.67-1.320.02311.382.774.155.54 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15AKTAF AONNF
       Returns  

Pair Trading with AKITA Drilling and Aeon

The main advantage of trading using opposite AKITA Drilling and Aeon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling position performs unexpectedly, Aeon 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 Aeon will offset losses from the drop in Aeon's long position.
The idea behind AKITA Drilling and Aeon Co 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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