Correlation Between GoldMining and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Accsys Technologies PLC, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Accsys Technologies.
Diversification Opportunities for GoldMining and Accsys Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between GoldMining and Accsys is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining 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 GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Accsys Technologies go up and down completely randomly.
Pair Corralation between GoldMining and Accsys Technologies
Assuming the 90 days trading horizon GoldMining is expected to under-perform the Accsys Technologies. But the stock apears to be less risky and, when comparing its historical volatility, GoldMining is 1.6 times less risky than Accsys Technologies. The stock trades about -0.18 of its potential returns per unit of risk. The Accsys Technologies PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,400 in Accsys Technologies PLC on September 22, 2024 and sell it today you would earn a total of 25.00 from holding Accsys Technologies PLC or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
GoldMining vs. Accsys Technologies PLC
Performance |
| Timeline |
| GoldMining |
| Accsys Technologies PLC |
GoldMining and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Accsys Technologies
The main advantage of trading using opposite GoldMining and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. Samsung Electronics Co | GoldMining vs. Samsung Electronics Co | GoldMining vs. Hyundai Motor | GoldMining vs. Reliance Industries Ltd |
| Accsys Technologies vs. Tlou Energy | Accsys Technologies vs. Rockfire Resources plc | Accsys Technologies vs. Ikigai Ventures | Accsys Technologies vs. Falcon Oil Gas |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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