Correlation Between Toncoin and AKRO

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

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

Diversification Opportunities for Toncoin and AKRO

-0.38

Correlation Coefficient

Toncoin  AKRO

Very good diversification

The 3 months correlation between Toncoin and AKRO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Toncoin and AKRO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKRO and Toncoin 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 Toncoin are associated (or correlated) with AKRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKRO has no effect on the direction of Toncoin i.e., Toncoin and AKRO go up and down completely randomly.

Pair Corralation between Toncoin and AKRO

Assuming the 90 days trading horizon Toncoin is expected to generate 154.77 times less return on investment than AKRO. But when comparing it to its historical volatility, Toncoin is 17.0 times less risky than AKRO. It trades about 0.02 of its potential returns per unit of risk. AKRO is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.01  in AKRO on April 23, 2025 and sell it today you would earn a total of  0.16  from holding AKRO or generate 1240.94% return on investment over 90 days.

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

Toncoin  vs.  AKRO

Toncoin

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Toncoin are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Toncoin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

AKRO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AKRO are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, AKRO exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Toncoin and AKRO

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

The idea behind Toncoin and AKRO 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.