Correlation Between AutoStore Holdings and Aker BP

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

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

Diversification Opportunities for AutoStore Holdings and Aker BP

-0.07

Correlation Coefficient

AutoStore Holdings  Aker BP

Good diversification

The 3 months correlation between AutoStore and Aker is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Aker BP ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker BP ASA and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Aker BP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker BP ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Aker BP go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Aker BP

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 2.18 times less return on investment than Aker BP. In addition to that, AutoStore Holdings is 2.78 times more volatile than Aker BP ASA. It trades about 0.02 of its total potential returns per unit of risk. Aker BP ASA is currently generating about 0.15 per unit of volatility. If you would invest  21,027  in Aker BP ASA on April 22, 2025 and sell it today you would earn a total of  3,613  from holding Aker BP ASA or generate 17.18% return on investment over 90 days.

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

AutoStore Holdings  vs.  Aker BP ASA

AutoStore Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, AutoStore Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Aker BP ASA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aker BP ASA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Aker BP displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AutoStore Holdings and Aker BP

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

The idea behind AutoStore Holdings and Aker BP 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.