Correlation Between Trican Well and Akastor ASA

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

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

Diversification Opportunities for Trican Well and Akastor ASA

0.0

Correlation Coefficient

Trican Well  Akastor ASA

Pay attention - limited upside

The 3 months correlation between Trican and Akastor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trican Well Service and Akastor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akastor ASA and Trican Well 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 Trican Well Service 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 Trican Well i.e., Trican Well and Akastor ASA go up and down completely randomly.

Pair Corralation between Trican Well and Akastor ASA

If you would invest  349.00  in Trican Well Service on September 5, 2024 and sell it today you would earn a total of  4.00  from holding Trican Well Service or generate 1.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Trican Well Service  vs.  Akastor ASA

Trican Well Service

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Trican Well Service are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Trican Well is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 nearly stable basic indicators, Akastor ASA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Trican Well and Akastor ASA

The main advantage of trading using opposite Trican Well and Akastor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trican Well 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 Trican Well Service 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.