Correlation Between FuelCell Energy and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Accsys Technologies 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 FuelCell Energy and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Accsys Technologies PLC, you can compare the effects of market volatilities on FuelCell Energy and Accsys Technologies 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 FuelCell Energy with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Accsys Technologies.
Diversification Opportunities for FuelCell Energy and Accsys Technologies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FuelCell and Accsys is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC and FuelCell 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 FuelCell Energy are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Accsys Technologies go up and down completely randomly.
Pair Corralation between FuelCell Energy and Accsys Technologies
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 3.15 times more return on investment than Accsys Technologies. However, FuelCell Energy is 3.15 times more volatile than Accsys Technologies PLC. It trades about 0.01 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about 0.0 per unit of risk. If you would invest 1,110 in FuelCell Energy on August 29, 2024 and sell it today you would lose (119.00) from holding FuelCell Energy or give up 10.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FuelCell Energy vs. Accsys Technologies PLC
Performance |
| Timeline |
| FuelCell Energy |
| Accsys Technologies PLC |
FuelCell Energy and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Accsys Technologies
The main advantage of trading using opposite FuelCell Energy and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Accsys Technologies 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.| FuelCell Energy vs. InterContinental Hotels Group | FuelCell Energy vs. Alfa Financial Software | FuelCell Energy vs. PPHE Hotel Group | FuelCell Energy vs. Iron Mountain |
| Accsys Technologies vs. Alliance Data Systems | Accsys Technologies vs. Skandinaviska Enskilda Banken | Accsys Technologies vs. MT Bank Corp | Accsys Technologies vs. Synchrony Financial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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