Correlation Between Akwel SA and Maat Pharma

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

By analyzing existing cross correlation between Akwel SA and Maat Pharma SA, you can compare the effects of market volatilities on Akwel SA and Maat Pharma 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 Akwel SA with a short position of Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akwel SA and Maat Pharma.

Diversification Opportunities for Akwel SA and Maat Pharma

-0.79

Correlation Coefficient

Akwel SA  Maat Pharma

Pay attention - limited upside

The 3 months correlation between Akwel and Maat is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Akwel SA and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma SA and Akwel SA 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 Akwel SA are associated (or correlated) with Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of Akwel SA i.e., Akwel SA and Maat Pharma go up and down completely randomly.

Pair Corralation between Akwel SA and Maat Pharma

Assuming the 90 days trading horizon Akwel SA is expected to under-perform the Maat Pharma. In addition to that, Akwel SA is 1.15 times more volatile than Maat Pharma SA. It trades about -0.15 of its total potential returns per unit of risk. Maat Pharma SA is currently generating about 0.12 per unit of volatility. If you would invest  710.00  in Maat Pharma SA on September 22, 2024 and sell it today you would earn a total of  78.00  from holding Maat Pharma SA or generate 10.99% return on investment over 90 days.

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

Akwel SA  vs.  Maat Pharma SA

Akwel SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akwel SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Maat Pharma SA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Maat Pharma SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Maat Pharma may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Akwel SA and Maat Pharma

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

The idea behind Akwel SA and Maat Pharma SA 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.