Correlation Between AKITA Drilling and One Choice

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

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

Diversification Opportunities for AKITA Drilling and One Choice

0.79

Correlation Coefficient

AKITA Drilling  One Choice

Poor diversification

The 3 months correlation between AKITA and One is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and One Choice Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice Portfolio and AKITA Drilling 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 AKITA Drilling are associated (or correlated) with One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice Portfolio has no effect on the direction of AKITA Drilling i.e., AKITA Drilling and One Choice go up and down completely randomly.

Pair Corralation between AKITA Drilling and One Choice

Assuming the 90 days horizon AKITA Drilling is expected to generate 4.66 times more return on investment than One Choice. However, AKITA Drilling is 4.66 times more volatile than One Choice Portfolio. It trades about 0.23 of its potential returns per unit of risk. One Choice Portfolio is currently generating about 0.19 per unit of risk. If you would invest  118.00  in AKITA Drilling on May 5, 2025 and sell it today you would earn a total of  48.00  from holding AKITA Drilling or generate 40.68% return on investment over 90 days.

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

AKITA Drilling  vs.  One Choice Portfolio

AKITA Drilling

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AKITA Drilling are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AKITA Drilling reported solid returns over the last few months and may actually be approaching a breakup point.

One Choice Portfolio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in One Choice Portfolio are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, One Choice may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AKITA Drilling and One Choice

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

The idea behind AKITA Drilling and One Choice Portfolio 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.