Correlation Between Ackermans Van and Whitestone

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

By analyzing existing cross correlation between Ackermans Van Haaren and Whitestone Group, you can compare the effects of market volatilities on Ackermans Van and Whitestone 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 Ackermans Van with a short position of Whitestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackermans Van and Whitestone.

Diversification Opportunities for Ackermans Van and Whitestone

0.24

Correlation Coefficient

Ackermans Van  Whitestone

Modest diversification

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

Pair Corralation between Ackermans Van and Whitestone

Assuming the 90 days trading horizon Ackermans Van Haaren is expected to under-perform the Whitestone. But the stock apears to be less risky and, when comparing its historical volatility, Ackermans Van Haaren is 1.26 times less risky than Whitestone. The stock trades about -0.03 of its potential returns per unit of risk. The Whitestone Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,190  in Whitestone Group on September 25, 2024 and sell it today you would earn a total of  80.00  from holding Whitestone Group or generate 6.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Ackermans Van Haaren  vs.  Whitestone Group

Ackermans Van Haaren

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ackermans Van Haaren has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ackermans Van is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Whitestone Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Whitestone Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Whitestone may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Ackermans Van and Whitestone

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

The idea behind Ackermans Van Haaren and Whitestone Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.