Correlation Between Appeninn Nyrt and AKKO Invest

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

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

Diversification Opportunities for Appeninn Nyrt and AKKO Invest

0.76

Correlation Coefficient

Appeninn Nyrt  AKKO Invest

Poor diversification

The 3 months correlation between Appeninn and AKKO is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Appeninn Nyrt and AKKO Invest Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKKO Invest Nyrt and Appeninn Nyrt 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 Appeninn Nyrt are associated (or correlated) with AKKO Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKKO Invest Nyrt has no effect on the direction of Appeninn Nyrt i.e., Appeninn Nyrt and AKKO Invest go up and down completely randomly.

Pair Corralation between Appeninn Nyrt and AKKO Invest

Assuming the 90 days trading horizon Appeninn Nyrt is expected to generate 0.85 times more return on investment than AKKO Invest. However, Appeninn Nyrt is 1.18 times less risky than AKKO Invest. It trades about 0.16 of its potential returns per unit of risk. AKKO Invest Nyrt is currently generating about 0.12 per unit of risk. If you would invest  48,800  in Appeninn Nyrt on September 15, 2024 and sell it today you would earn a total of  19,000  from holding Appeninn Nyrt or generate 38.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.21%
Values	Daily Returns

Appeninn Nyrt  vs.  AKKO Invest Nyrt

Appeninn Nyrt

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Appeninn Nyrt are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Appeninn Nyrt may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AKKO Invest Nyrt

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AKKO Invest Nyrt are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AKKO Invest unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Appeninn Nyrt and AKKO Invest

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

The idea behind Appeninn Nyrt and AKKO Invest Nyrt 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.