Correlation Between ACCSYS TECHPLC and MAGIC SOFTWARE
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and MAGIC SOFTWARE 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 MAGIC SOFTWARE 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 MAGIC SOFTWARE ENTR, you can compare the effects of market volatilities on ACCSYS TECHPLC and MAGIC SOFTWARE 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 MAGIC SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and MAGIC SOFTWARE.
Diversification Opportunities for ACCSYS TECHPLC and MAGIC SOFTWARE
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACCSYS and MAGIC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and MAGIC SOFTWARE ENTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGIC SOFTWARE ENTR 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 MAGIC SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGIC SOFTWARE ENTR has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and MAGIC SOFTWARE go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and MAGIC SOFTWARE
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to under-perform the MAGIC SOFTWARE. In addition to that, ACCSYS TECHPLC is 1.01 times more volatile than MAGIC SOFTWARE ENTR. It trades about -0.04 of its total potential returns per unit of risk. MAGIC SOFTWARE ENTR is currently generating about 0.07 per unit of volatility. If you would invest 1,040 in MAGIC SOFTWARE ENTR on August 31, 2024 and sell it today you would earn a total of 60.00 from holding MAGIC SOFTWARE ENTR or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. MAGIC SOFTWARE ENTR
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| MAGIC SOFTWARE ENTR |
ACCSYS TECHPLC and MAGIC SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and MAGIC SOFTWARE
The main advantage of trading using opposite ACCSYS TECHPLC and MAGIC SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, MAGIC SOFTWARE 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 MAGIC SOFTWARE will offset losses from the drop in MAGIC SOFTWARE's long position.| ACCSYS TECHPLC vs. Svenska Cellulosa Aktiebolaget | ACCSYS TECHPLC vs. SVENSKA CELLULO B | ACCSYS TECHPLC vs. UFP Industries | ACCSYS TECHPLC vs. Boise Cascade |
| MAGIC SOFTWARE vs. SIVERS SEMICONDUCTORS AB | MAGIC SOFTWARE vs. Darden Restaurants | MAGIC SOFTWARE vs. Reliance Steel Aluminum | MAGIC SOFTWARE vs. Q2M Managementberatung AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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