Correlation Between Vulcan Materials and AKITA Drilling
Can any of the company-specific risk be diversified away by investing in both Vulcan Materials and AKITA Drilling 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 Vulcan Materials and AKITA Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Materials and AKITA Drilling, you can compare the effects of market volatilities on Vulcan Materials and AKITA Drilling 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 Vulcan Materials with a short position of AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and AKITA Drilling.
Diversification Opportunities for Vulcan Materials and AKITA Drilling
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vulcan and AKITA is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling and Vulcan Materials 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 Vulcan Materials are associated (or correlated) with AKITA Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKITA Drilling has no effect on the direction of Vulcan Materials i.e., Vulcan Materials and AKITA Drilling go up and down completely randomly.
Pair Corralation between Vulcan Materials and AKITA Drilling
Considering the 90-day investment horizon Vulcan Materials is expected to generate 0.46 times more return on investment than AKITA Drilling. However, Vulcan Materials is 2.16 times less risky than AKITA Drilling. It trades about 0.14 of its potential returns per unit of risk. AKITA Drilling is currently generating about -0.06 per unit of risk. If you would invest 26,509 in Vulcan Materials on June 12, 2025 and sell it today you would earn a total of 2,867 from holding Vulcan Materials or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Vulcan Materials vs. AKITA Drilling
Performance |
| Timeline |
| Vulcan Materials |
| AKITA Drilling |
Vulcan Materials and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Materials and AKITA Drilling
The main advantage of trading using opposite Vulcan Materials and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Materials position performs unexpectedly, AKITA Drilling 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 AKITA Drilling will offset losses from the drop in AKITA Drilling's long position.| Vulcan Materials vs. Martin Marietta Materials | Vulcan Materials vs. CRH PLC ADR | Vulcan Materials vs. Eagle Materials | Vulcan Materials vs. United States Lime |
| AKITA Drilling vs. Cathedral Energy Services | AKITA Drilling vs. Vantage Drilling International | AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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