Correlation Between Aker Horizons and Techstep ASA
Can any of the company-specific risk be diversified away by investing in both Aker Horizons and Techstep 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 Aker Horizons and Techstep ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Horizons AS and Techstep ASA, you can compare the effects of market volatilities on Aker Horizons and Techstep 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 Aker Horizons with a short position of Techstep ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Horizons and Techstep ASA.
Diversification Opportunities for Aker Horizons and Techstep ASA
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aker and Techstep is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aker Horizons AS and Techstep ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techstep ASA and Aker Horizons 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 Aker Horizons AS are associated (or correlated) with Techstep ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techstep ASA has no effect on the direction of Aker Horizons i.e., Aker Horizons and Techstep ASA go up and down completely randomly.
Pair Corralation between Aker Horizons and Techstep ASA
Assuming the 90 days trading horizon Aker Horizons AS is expected to under-perform the Techstep ASA. In addition to that, Aker Horizons is 3.96 times more volatile than Techstep ASA. It trades about -0.14 of its total potential returns per unit of risk. Techstep ASA is currently generating about 0.04 per unit of volatility. If you would invest 1,225 in Techstep ASA on June 12, 2025 and sell it today you would earn a total of 60.00 from holding Techstep ASA or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Horizons AS vs. Techstep ASA
Performance |
| Timeline |
| Aker Horizons AS |
| Techstep ASA |
Aker Horizons and Techstep ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Horizons and Techstep ASA
The main advantage of trading using opposite Aker Horizons and Techstep ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Horizons position performs unexpectedly, Techstep 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 Techstep ASA will offset losses from the drop in Techstep ASA's long position.| Aker Horizons vs. Aker Carbon Capture | Aker Horizons vs. Aker BP ASA | Aker Horizons vs. Aker Solutions ASA | Aker Horizons vs. REC Silicon ASA |
| Techstep ASA vs. Pexip Holding ASA | Techstep ASA vs. Enea AB | Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Zalaris ASA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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