Correlation Between Accel Solutions and Elron Electronic
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Elron Electronic 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 Accel Solutions and Elron Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Solutions Group and Elron Electronic Industries, you can compare the effects of market volatilities on Accel Solutions and Elron Electronic 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 Accel Solutions with a short position of Elron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Elron Electronic.
Diversification Opportunities for Accel Solutions and Elron Electronic
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accel and Elron is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Elron Electronic Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elron Electronic Ind and Accel Solutions 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 Accel Solutions Group are associated (or correlated) with Elron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elron Electronic Ind has no effect on the direction of Accel Solutions i.e., Accel Solutions and Elron Electronic go up and down completely randomly.
Pair Corralation between Accel Solutions and Elron Electronic
Assuming the 90 days trading horizon Accel Solutions Group is expected to generate 0.81 times more return on investment than Elron Electronic. However, Accel Solutions Group is 1.23 times less risky than Elron Electronic. It trades about 0.04 of its potential returns per unit of risk. Elron Electronic Industries is currently generating about 0.03 per unit of risk. If you would invest 10,030 in Accel Solutions Group on September 3, 2024 and sell it today you would earn a total of 2,880 from holding Accel Solutions Group or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Elron Electronic Industries
Performance |
| Timeline |
| Accel Solutions Group |
| Elron Electronic Ind |
Accel Solutions and Elron Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Elron Electronic
The main advantage of trading using opposite Accel Solutions and Elron Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Elron Electronic 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 Elron Electronic will offset losses from the drop in Elron Electronic's long position.| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
| Elron Electronic vs. Elbit Systems | Elron Electronic vs. Discount Investment Corp | Elron Electronic vs. Clal Insurance Enterprises | Elron Electronic vs. AudioCodes |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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