Correlation Between Acorn Energy, and Codan

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

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

Diversification Opportunities for Acorn Energy, and Codan

0.0

Correlation Coefficient

Acorn Energy,  Codan

Pay attention - limited upside

The 3 months correlation between Acorn and Codan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acorn Energy, Common and Codan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codan Limited and Acorn Energy, 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 Acorn Energy, Common are associated (or correlated) with Codan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codan Limited has no effect on the direction of Acorn Energy, i.e., Acorn Energy, and Codan go up and down completely randomly.

Pair Corralation between Acorn Energy, and Codan

If you would invest  1,788  in Acorn Energy, Common on May 25, 2025 and sell it today you would earn a total of  937.00  from holding Acorn Energy, Common or generate 52.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Acorn Energy, Common  vs.  Codan Limited

Acorn Energy, Common

Risk-Adjusted Performance

Good

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

Codan Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Codan Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Codan is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Acorn Energy, and Codan

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

The idea behind Acorn Energy, Common and Codan Limited 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.