Correlation Between Mccoy Global and Akastor ASA

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

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

Diversification Opportunities for Mccoy Global and Akastor ASA

0.24

Correlation Coefficient

Mccoy Global  Akastor ASA

Modest diversification

The 3 months correlation between Mccoy and Akastor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mccoy Global and Akastor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akastor ASA and Mccoy Global 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 Mccoy Global are associated (or correlated) with Akastor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akastor ASA has no effect on the direction of Mccoy Global i.e., Mccoy Global and Akastor ASA go up and down completely randomly.

Pair Corralation between Mccoy Global and Akastor ASA

Assuming the 90 days horizon Mccoy Global is expected to generate 2.69 times more return on investment than Akastor ASA. However, Mccoy Global is 2.69 times more volatile than Akastor ASA. It trades about 0.09 of its potential returns per unit of risk. Akastor ASA is currently generating about -0.12 per unit of risk. If you would invest  150.00  in Mccoy Global on September 30, 2024 and sell it today you would earn a total of  48.00  from holding Mccoy Global or generate 32.0% return on investment over 90 days.

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

Mccoy Global  vs.  Akastor ASA

Mccoy Global

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mccoy Global reported solid returns over the last few months and may actually be approaching a breakup point.

Akastor ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akastor ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Mccoy Global and Akastor ASA

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

The idea behind Mccoy Global and Akastor ASA 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.