Correlation Between Raytheon Technologies and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Raytheon Technologies 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 Raytheon Technologies and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytheon Technologies Corp and Accsys Technologies PLC, you can compare the effects of market volatilities on Raytheon Technologies 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 Raytheon Technologies with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytheon Technologies and Accsys Technologies.
Diversification Opportunities for Raytheon Technologies and Accsys Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raytheon and Accsys is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Raytheon Technologies Corp 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 Raytheon Technologies 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 Raytheon Technologies Corp 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 Raytheon Technologies i.e., Raytheon Technologies and Accsys Technologies go up and down completely randomly.
Pair Corralation between Raytheon Technologies and Accsys Technologies
Assuming the 90 days trading horizon Raytheon Technologies Corp is expected to generate 0.59 times more return on investment than Accsys Technologies. However, Raytheon Technologies Corp is 1.69 times less risky than Accsys Technologies. It trades about 0.04 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.02 per unit of risk. If you would invest 9,601 in Raytheon Technologies Corp on August 25, 2024 and sell it today you would earn a total of 2,483 from holding Raytheon Technologies Corp or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Raytheon Technologies Corp vs. Accsys Technologies PLC
Performance |
| Timeline |
| Raytheon Technologies |
| Accsys Technologies PLC |
Raytheon Technologies and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytheon Technologies and Accsys Technologies
The main advantage of trading using opposite Raytheon Technologies and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytheon Technologies 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.| Raytheon Technologies vs. Samsung Electronics Co | Raytheon Technologies vs. Samsung Electronics Co | Raytheon Technologies vs. Hyundai Motor | Raytheon Technologies vs. Toyota Motor Corp |
| Accsys Technologies vs. SupplyMe Capital PLC | Accsys Technologies vs. SM Energy Co | Accsys Technologies vs. FuelCell Energy | Accsys Technologies vs. Grand Vision Media |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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