Correlation Between Keepers Holdings and AC Energy

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

By analyzing existing cross correlation between Keepers Holdings and AC Energy Philippines, you can compare the effects of market volatilities on Keepers Holdings and AC Energy 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 Keepers Holdings with a short position of AC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keepers Holdings and AC Energy.

Diversification Opportunities for Keepers Holdings and AC Energy

-0.8

Correlation Coefficient

Keepers Holdings  AC Energy

Pay attention - limited upside

The 3 months correlation between Keepers and ACEN is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and AC Energy Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Energy Philippines and Keepers Holdings 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 Keepers Holdings are associated (or correlated) with AC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Energy Philippines has no effect on the direction of Keepers Holdings i.e., Keepers Holdings and AC Energy go up and down completely randomly.

Pair Corralation between Keepers Holdings and AC Energy

Assuming the 90 days trading horizon Keepers Holdings is expected to generate 0.58 times more return on investment than AC Energy. However, Keepers Holdings is 1.73 times less risky than AC Energy. It trades about 0.17 of its potential returns per unit of risk. AC Energy Philippines is currently generating about -0.14 per unit of risk. If you would invest  203.00  in Keepers Holdings on November 27, 2024 and sell it today you would earn a total of  37.00  from holding Keepers Holdings or generate 18.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

Keepers Holdings  vs.  AC Energy Philippines

Keepers Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Keepers Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Keepers Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

AC Energy Philippines

Risk-Adjusted Performance

Very Weak

Over the last 90 days AC Energy Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Keepers Holdings and AC Energy

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

The idea behind Keepers Holdings and AC Energy Philippines 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.