Correlation Between Argeo AS and Akastor ASA

Can any of the company-specific risk be diversified away by investing in both Argeo AS and Akastor 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 Argeo AS and Akastor ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Argeo AS and Akastor ASA, you can compare the effects of market volatilities on Argeo AS and Akastor 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 Argeo AS with a short position of Akastor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argeo AS and Akastor ASA.

Diversification Opportunities for Argeo AS and Akastor ASA

-0.35

Correlation Coefficient

Argeo AS  Akastor ASA

Very good diversification

The 3 months correlation between Argeo and Akastor is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Argeo AS and Akastor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akastor ASA and Argeo AS 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 Argeo AS are associated (or correlated) with Akastor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akastor ASA has no effect on the direction of Argeo AS i.e., Argeo AS and Akastor ASA go up and down completely randomly.

Pair Corralation between Argeo AS and Akastor ASA

Assuming the 90 days trading horizon Argeo AS is expected to under-perform the Akastor ASA. In addition to that, Argeo AS is 9.25 times more volatile than Akastor ASA. It trades about -0.13 of its total potential returns per unit of risk. Akastor ASA is currently generating about 0.07 per unit of volatility. If you would invest  1,140  in Akastor ASA on April 25, 2025 and sell it today you would earn a total of  72.00  from holding Akastor ASA or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Argeo AS  vs.  Akastor ASA

Argeo AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argeo AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Akastor ASA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akastor ASA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Akastor ASA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Argeo AS and Akastor ASA

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

The idea behind Argeo AS and Akastor ASA 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 Stocks Directory module to find actively traded stocks across global markets.