Correlation Between ACCSYS TECHPLC and Lamar Advertising
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and Lamar Advertising 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 ACCSYS TECHPLC and Lamar Advertising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACCSYS TECHPLC EO and Lamar Advertising, you can compare the effects of market volatilities on ACCSYS TECHPLC and Lamar Advertising 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 ACCSYS TECHPLC with a short position of Lamar Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and Lamar Advertising.
Diversification Opportunities for ACCSYS TECHPLC and Lamar Advertising
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ACCSYS and Lamar is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and Lamar Advertising in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lamar Advertising and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with Lamar Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lamar Advertising has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and Lamar Advertising go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and Lamar Advertising
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to generate 1.75 times more return on investment than Lamar Advertising. However, ACCSYS TECHPLC is 1.75 times more volatile than Lamar Advertising. It trades about 0.15 of its potential returns per unit of risk. Lamar Advertising is currently generating about -0.19 per unit of risk. If you would invest 46.00 in ACCSYS TECHPLC EO on December 10, 2024 and sell it today you would earn a total of 5.00 from holding ACCSYS TECHPLC EO or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. Lamar Advertising
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| Lamar Advertising |
ACCSYS TECHPLC and Lamar Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and Lamar Advertising
The main advantage of trading using opposite ACCSYS TECHPLC and Lamar Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, Lamar Advertising 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 Lamar Advertising will offset losses from the drop in Lamar Advertising's long position.| ACCSYS TECHPLC vs. Svenska Cellulosa Aktiebolaget | ACCSYS TECHPLC vs. SVENSKA CELLULO B | ACCSYS TECHPLC vs. Svenska Cellulosa Aktiebolaget | ACCSYS TECHPLC vs. West Fraser Timber |
| Lamar Advertising vs. Eurasia Mining Plc | Lamar Advertising vs. Ebro Foods SA | Lamar Advertising vs. DaChan Food Limited | Lamar Advertising vs. SENECA FOODS A |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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