Correlation Between AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC 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 AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC 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 AAC TECHNOLOGHLDGADR with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAC and ACCSYS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 1.26 times more return on investment than ACCSYS TECHPLC. However, AAC TECHNOLOGHLDGADR is 1.26 times more volatile than ACCSYS TECHPLC EO. It trades about 0.02 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.12 per unit of risk. If you would invest 464.00 in AAC TECHNOLOGHLDGADR on November 7, 2024 and sell it today you would earn a total of 2.00 from holding AAC TECHNOLOGHLDGADR or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| AAC TECHNOLOGHLDGADR |
| ACCSYS TECHPLC EO |
AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| AAC TECHNOLOGHLDGADR vs. Townsquare Media | AAC TECHNOLOGHLDGADR vs. Tencent Music Entertainment | AAC TECHNOLOGHLDGADR vs. Live Nation Entertainment | AAC TECHNOLOGHLDGADR vs. SQUIRREL MEDIA SA |
| ACCSYS TECHPLC vs. Goodyear Tire Rubber | ACCSYS TECHPLC vs. Guangdong Investment Limited | ACCSYS TECHPLC vs. NEWELL RUBBERMAID | ACCSYS TECHPLC vs. CHRYSALIS INVESTMENTS LTD |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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