Correlation Between Aker Carbon and MPC Container

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

By analyzing existing cross correlation between Aker Carbon Capture and MPC Container Ships, you can compare the effects of market volatilities on Aker Carbon and MPC Container 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 Carbon with a short position of MPC Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and MPC Container.

Diversification Opportunities for Aker Carbon and MPC Container

-0.63

Correlation Coefficient

Aker Carbon  MPC Container

Excellent diversification

The 3 months correlation between Aker and MPC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and MPC Container Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Container Ships and Aker Carbon 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 Carbon Capture are associated (or correlated) with MPC Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Container Ships has no effect on the direction of Aker Carbon i.e., Aker Carbon and MPC Container go up and down completely randomly.

Pair Corralation between Aker Carbon and MPC Container

Assuming the 90 days trading horizon Aker Carbon Capture is expected to under-perform the MPC Container. In addition to that, Aker Carbon is 6.37 times more volatile than MPC Container Ships. It trades about -0.02 of its total potential returns per unit of risk. MPC Container Ships is currently generating about 0.15 per unit of volatility. If you would invest  1,438  in MPC Container Ships on April 24, 2025 and sell it today you would earn a total of  385.00  from holding MPC Container Ships or generate 26.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Aker Carbon Capture  vs.  MPC Container Ships

Aker Carbon Capture

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aker Carbon Capture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

MPC Container Ships

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MPC Container Ships are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, MPC Container disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aker Carbon and MPC Container

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

The idea behind Aker Carbon Capture and MPC Container Ships 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.