Correlation Between Access Bio and SIMMTECH
Can any of the company-specific risk be diversified away by investing in both Access Bio and SIMMTECH 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 Access Bio and SIMMTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and SIMMTECH Co, you can compare the effects of market volatilities on Access Bio and SIMMTECH 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 Access Bio with a short position of SIMMTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and SIMMTECH.
Diversification Opportunities for Access Bio and SIMMTECH
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Access and SIMMTECH is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and SIMMTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMMTECH and Access Bio 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 Access Bio are associated (or correlated) with SIMMTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMMTECH has no effect on the direction of Access Bio i.e., Access Bio and SIMMTECH go up and down completely randomly.
Pair Corralation between Access Bio and SIMMTECH
Assuming the 90 days trading horizon Access Bio is expected to generate 2.58 times less return on investment than SIMMTECH. In addition to that, Access Bio is 1.54 times more volatile than SIMMTECH Co. It trades about 0.05 of its total potential returns per unit of risk. SIMMTECH Co is currently generating about 0.19 per unit of volatility. If you would invest 1,092,000 in SIMMTECH Co on November 3, 2024 and sell it today you would earn a total of 138,000 from holding SIMMTECH Co or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. SIMMTECH Co
Performance |
| Timeline |
| Access Bio |
| SIMMTECH |
Access Bio and SIMMTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and SIMMTECH
The main advantage of trading using opposite Access Bio and SIMMTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, SIMMTECH 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 SIMMTECH will offset losses from the drop in SIMMTECH's long position.| Access Bio vs. Korea Petro Chemical | Access Bio vs. Cuckoo Electronics Co | Access Bio vs. Kyung In Synthetic Corp | Access Bio vs. ABCO Electronics Co |
| SIMMTECH vs. Global Standard Technology | SIMMTECH vs. Hyundai BNG Steel | SIMMTECH vs. Woori Technology | SIMMTECH vs. iNtRON Biotechnology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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