Correlation Between Volkswagen and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both Volkswagen and Accesso Technology 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 Volkswagen and Accesso Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volkswagen AG and Accesso Technology Group, you can compare the effects of market volatilities on Volkswagen and Accesso Technology 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 Volkswagen with a short position of Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and Accesso Technology.
Diversification Opportunities for Volkswagen and Accesso Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and Accesso is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and Volkswagen 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 Volkswagen AG are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Volkswagen i.e., Volkswagen and Accesso Technology go up and down completely randomly.
Pair Corralation between Volkswagen and Accesso Technology
Assuming the 90 days trading horizon Volkswagen AG is expected to generate 0.42 times more return on investment than Accesso Technology. However, Volkswagen AG is 2.4 times less risky than Accesso Technology. It trades about 0.47 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.09 per unit of risk. If you would invest 8,905 in Volkswagen AG on November 4, 2024 and sell it today you would earn a total of 1,220 from holding Volkswagen AG or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Volkswagen AG vs. Accesso Technology Group
Performance |
| Timeline |
| Volkswagen AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Accesso Technology |
Volkswagen and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and Accesso Technology
The main advantage of trading using opposite Volkswagen and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| Volkswagen vs. Leroy Seafood Group | Volkswagen vs. First Class Metals | Volkswagen vs. Beazer Homes USA | Volkswagen vs. Dairy Farm International |
| Accesso Technology vs. Vietnam Enterprise Investments | Accesso Technology vs. AMG Advanced Metallurgical | Accesso Technology vs. Europa Metals | Accesso Technology vs. Golden Metal Resources |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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