Correlation Between ChampionX and Aker Solutions
Can any of the company-specific risk be diversified away by investing in both ChampionX and Aker Solutions 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 ChampionX and Aker Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Aker Solutions ASA, you can compare the effects of market volatilities on ChampionX and Aker Solutions 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 ChampionX with a short position of Aker Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Aker Solutions.
Diversification Opportunities for ChampionX and Aker Solutions
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ChampionX and Aker is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Aker Solutions ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Solutions ASA and ChampionX 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 ChampionX are associated (or correlated) with Aker Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Solutions ASA has no effect on the direction of ChampionX i.e., ChampionX and Aker Solutions go up and down completely randomly.
Pair Corralation between ChampionX and Aker Solutions
Considering the 90-day investment horizon ChampionX is expected to under-perform the Aker Solutions. But the stock apears to be less risky and, when comparing its historical volatility, ChampionX is 2.68 times less risky than Aker Solutions. The stock trades about 0.0 of its potential returns per unit of risk. The Aker Solutions ASA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Aker Solutions ASA on October 12, 2024 and sell it today you would earn a total of 704.00 from holding Aker Solutions ASA or generate 237.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ChampionX vs. Aker Solutions ASA
Performance |
Timeline |
ChampionX |
Aker Solutions ASA |
ChampionX and Aker Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ChampionX and Aker Solutions
The main advantage of trading using opposite ChampionX and Aker Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Aker Solutions 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 Aker Solutions will offset losses from the drop in Aker Solutions' long position.ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
Aker Solutions vs. TechnipFMC PLC | Aker Solutions vs. Now Inc | Aker Solutions vs. ChampionX | Aker Solutions vs. Baker Hughes Co |
Check out your portfolio center.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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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