Correlation Between Freight Technologies and Ackroo

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

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

Diversification Opportunities for Freight Technologies and Ackroo

0.01

Correlation Coefficient

Freight Technologies  Ackroo

Significant diversification

The 3 months correlation between Freight and Ackroo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and Freight Technologies 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 Freight Technologies are associated (or correlated) with Ackroo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackroo Inc has no effect on the direction of Freight Technologies i.e., Freight Technologies and Ackroo go up and down completely randomly.

Pair Corralation between Freight Technologies and Ackroo

Given the investment horizon of 90 days Freight Technologies is expected to under-perform the Ackroo. In addition to that, Freight Technologies is 1.85 times more volatile than Ackroo Inc. It trades about -0.13 of its total potential returns per unit of risk. Ackroo Inc is currently generating about 0.03 per unit of volatility. If you would invest  9.30  in Ackroo Inc on October 10, 2024 and sell it today you would earn a total of  0.55  from holding Ackroo Inc or generate 5.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Freight Technologies  vs.  Ackroo Inc

Freight Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Freight Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Freight Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ackroo Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 4 (%) 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.

Pair Trading with Freight Technologies and Ackroo

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

The idea behind Freight Technologies and Ackroo Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.