Correlation Between ACCSYS TECHPLC and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and TreeHouse Foods 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 TreeHouse Foods 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 TreeHouse Foods, you can compare the effects of market volatilities on ACCSYS TECHPLC and TreeHouse Foods 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 TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and TreeHouse Foods.
Diversification Opportunities for ACCSYS TECHPLC and TreeHouse Foods
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACCSYS and TreeHouse is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods 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 TreeHouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TreeHouse Foods has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and TreeHouse Foods go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and TreeHouse Foods
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to under-perform the TreeHouse Foods. But the stock apears to be less risky and, when comparing its historical volatility, ACCSYS TECHPLC EO is 1.62 times less risky than TreeHouse Foods. The stock trades about -0.15 of its potential returns per unit of risk. The TreeHouse Foods is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,480 in TreeHouse Foods on August 28, 2024 and sell it today you would lose (120.00) from holding TreeHouse Foods or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. TreeHouse Foods
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| TreeHouse Foods |
ACCSYS TECHPLC and TreeHouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and TreeHouse Foods
The main advantage of trading using opposite ACCSYS TECHPLC and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, TreeHouse Foods 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 TreeHouse Foods will offset losses from the drop in TreeHouse Foods' long position.| ACCSYS TECHPLC vs. ZINC MEDIA GR | ACCSYS TECHPLC vs. Townsquare Media | ACCSYS TECHPLC vs. GigaMedia | ACCSYS TECHPLC vs. TOWNSQUARE MEDIA INC |
| TreeHouse Foods vs. Superior Plus Corp | TreeHouse Foods vs. NMI Holdings | TreeHouse Foods vs. Origin Agritech | TreeHouse Foods vs. SIVERS SEMICONDUCTORS AB |
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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