Correlation Between K2A Knaust and Acrinova

Can any of the company-specific risk be diversified away by investing in both K2A Knaust and Acrinova 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 K2A Knaust and Acrinova into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between K2A Knaust Andersson and Acrinova AB Series, you can compare the effects of market volatilities on K2A Knaust and Acrinova 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 K2A Knaust with a short position of Acrinova. Check out your portfolio center. Please also check ongoing floating volatility patterns of K2A Knaust and Acrinova.

Diversification Opportunities for K2A Knaust and Acrinova

0.4

Correlation Coefficient

K2A Knaust  Acrinova

Very weak diversification

The 3 months correlation between K2A and Acrinova is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding K2A Knaust Andersson and Acrinova AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrinova AB Series and K2A Knaust 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 K2A Knaust Andersson are associated (or correlated) with Acrinova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrinova AB Series has no effect on the direction of K2A Knaust i.e., K2A Knaust and Acrinova go up and down completely randomly.

Pair Corralation between K2A Knaust and Acrinova

Assuming the 90 days trading horizon K2A Knaust is expected to generate 12.83 times less return on investment than Acrinova. In addition to that, K2A Knaust is 1.1 times more volatile than Acrinova AB Series. It trades about 0.01 of its total potential returns per unit of risk. Acrinova AB Series is currently generating about 0.18 per unit of volatility. If you would invest  1,045  in Acrinova AB Series on April 25, 2025 and sell it today you would earn a total of  240.00  from holding Acrinova AB Series or generate 22.97% return on investment over 90 days.

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

K2A Knaust Andersson  vs.  Acrinova AB Series

K2A Knaust Andersson

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in K2A Knaust Andersson are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, K2A Knaust is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Acrinova AB Series

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acrinova AB Series are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Acrinova sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with K2A Knaust and Acrinova

The main advantage of trading using opposite K2A Knaust and Acrinova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K2A Knaust position performs unexpectedly, Acrinova 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 Acrinova will offset losses from the drop in Acrinova's long position.

The idea behind K2A Knaust Andersson and Acrinova AB Series 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.