Correlation Between ACCSYS TECHPLC and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on ACCSYS TECHPLC and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and Meiko Electronics.
Diversification Opportunities for ACCSYS TECHPLC and Meiko Electronics
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACCSYS and Meiko is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and Meiko Electronics go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and Meiko Electronics
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to generate 1.61 times more return on investment than Meiko Electronics. However, ACCSYS TECHPLC is 1.61 times more volatile than Meiko Electronics Co. It trades about -0.08 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about -0.17 per unit of risk. If you would invest 53.00 in ACCSYS TECHPLC EO on October 20, 2024 and sell it today you would lose (2.00) from holding ACCSYS TECHPLC EO or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. Meiko Electronics Co
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| Meiko Electronics |
ACCSYS TECHPLC and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and Meiko Electronics
The main advantage of trading using opposite ACCSYS TECHPLC and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.| ACCSYS TECHPLC vs. Kingdee International Software | ACCSYS TECHPLC vs. GRUPO CARSO A1 | ACCSYS TECHPLC vs. Unity Software | ACCSYS TECHPLC vs. INTER CARS SA |
| Meiko Electronics vs. HEMISPHERE EGY | Meiko Electronics vs. Rocket Internet SE | Meiko Electronics vs. INTERSHOP Communications Aktiengesellschaft | Meiko Electronics vs. Casio Computer CoLtd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |