Correlation Between Wishpond Technologies and Ackroo

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

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

Diversification Opportunities for Wishpond Technologies and Ackroo

-0.4

Correlation Coefficient

Wishpond Technologies  Ackroo

Very good diversification

The 3 months correlation between Wishpond and Ackroo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Wishpond Technologies and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and Wishpond 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 Wishpond 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 Wishpond Technologies i.e., Wishpond Technologies and Ackroo go up and down completely randomly.

Pair Corralation between Wishpond Technologies and Ackroo

Assuming the 90 days horizon Wishpond Technologies is expected to under-perform the Ackroo. In addition to that, Wishpond Technologies is 11.23 times more volatile than Ackroo Inc. It trades about -0.04 of its total potential returns per unit of risk. Ackroo Inc is currently generating about -0.22 per unit of volatility. If you would invest  10.00  in Ackroo Inc on October 22, 2024 and sell it today you would lose (0.15) from holding Ackroo Inc or give up 1.5% of portfolio value over 90 days.

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

Wishpond Technologies  vs.  Ackroo Inc

Wishpond Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Ackroo Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 11 (%) 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 Wishpond Technologies and Ackroo

The main advantage of trading using opposite Wishpond Technologies and Ackroo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wishpond 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 Wishpond 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.