Correlation Between Aker Carbon and Wilh Wilhelmsen

Can any of the company-specific risk be diversified away by investing in both Aker Carbon and Wilh Wilhelmsen 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 Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding, you can compare the effects of market volatilities on Aker Carbon and Wilh Wilhelmsen 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 Wilh Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Carbon and Wilh Wilhelmsen.

Diversification Opportunities for Aker Carbon and Wilh Wilhelmsen

-0.74

Correlation Coefficient

Aker Carbon  Wilh Wilhelmsen

Pay attention - limited upside

The 3 months correlation between Aker and Wilh is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aker Carbon Capture and Wilh Wilhelmsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilh Wilhelmsen Holding 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 Wilh Wilhelmsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilh Wilhelmsen Holding has no effect on the direction of Aker Carbon i.e., Aker Carbon and Wilh Wilhelmsen go up and down completely randomly.

Pair Corralation between Aker Carbon and Wilh Wilhelmsen

Assuming the 90 days trading horizon Aker Carbon Capture is expected to under-perform the Wilh Wilhelmsen. In addition to that, Aker Carbon is 12.19 times more volatile than Wilh Wilhelmsen Holding. It trades about -0.01 of its total potential returns per unit of risk. Wilh Wilhelmsen Holding is currently generating about 0.27 per unit of volatility. If you would invest  35,161  in Wilh Wilhelmsen Holding on April 23, 2025 and sell it today you would earn a total of  9,039  from holding Wilh Wilhelmsen Holding or generate 25.71% 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.  Wilh Wilhelmsen Holding

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.

Wilh Wilhelmsen Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wilh Wilhelmsen Holding are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Wilh Wilhelmsen disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aker Carbon and Wilh Wilhelmsen

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

The idea behind Aker Carbon Capture and Wilh Wilhelmsen Holding 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.