Correlation Between ACI Worldwide and Akamai Technologies
Can any of the company-specific risk be diversified away by investing in both ACI Worldwide and Akamai Technologies 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 ACI Worldwide and Akamai Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACI Worldwide and Akamai Technologies, you can compare the effects of market volatilities on ACI Worldwide and Akamai Technologies 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 ACI Worldwide with a short position of Akamai Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACI Worldwide and Akamai Technologies.
Diversification Opportunities for ACI Worldwide and Akamai Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ACI and Akamai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ACI Worldwide and Akamai Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akamai Technologies and ACI Worldwide 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 ACI Worldwide are associated (or correlated) with Akamai Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akamai Technologies has no effect on the direction of ACI Worldwide i.e., ACI Worldwide and Akamai Technologies go up and down completely randomly.
Pair Corralation between ACI Worldwide and Akamai Technologies
Given the investment horizon of 90 days ACI Worldwide is expected to under-perform the Akamai Technologies. In addition to that, ACI Worldwide is 1.02 times more volatile than Akamai Technologies. It trades about -0.12 of its total potential returns per unit of risk. Akamai Technologies is currently generating about 0.08 per unit of volatility. If you would invest 7,789 in Akamai Technologies on March 27, 2025 and sell it today you would earn a total of 164.00 from holding Akamai Technologies or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACI Worldwide vs. Akamai Technologies
Performance |
| Timeline |
| ACI Worldwide |
| Akamai Technologies |
ACI Worldwide and Akamai Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACI Worldwide and Akamai Technologies
The main advantage of trading using opposite ACI Worldwide and Akamai Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACI Worldwide position performs unexpectedly, Akamai Technologies 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 Akamai Technologies will offset losses from the drop in Akamai Technologies' long position.| ACI Worldwide vs. NetScout Systems | ACI Worldwide vs. Consensus Cloud Solutions | ACI Worldwide vs. CSG Systems International | ACI Worldwide vs. Remitly Global |
| Akamai Technologies vs. Check Point Software | Akamai Technologies vs. VeriSign | Akamai Technologies vs. Qualys Inc | Akamai Technologies vs. F5 Networks |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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