Correlation Between Accel Solutions and Nice
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Nice 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 Nice 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 Nice, you can compare the effects of market volatilities on Accel Solutions and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Nice.
Diversification Opportunities for Accel Solutions and Nice
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Accel and Nice is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Accel Solutions i.e., Accel Solutions and Nice go up and down completely randomly.
Pair Corralation between Accel Solutions and Nice
Assuming the 90 days trading horizon Accel Solutions Group is expected to under-perform the Nice. But the stock apears to be less risky and, when comparing its historical volatility, Accel Solutions Group is 1.49 times less risky than Nice. The stock trades about -0.08 of its potential returns per unit of risk. The Nice is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,601,000 in Nice on September 1, 2024 and sell it today you would lose (65,000) from holding Nice or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Nice
Performance |
| Timeline |
| Accel Solutions Group |
| Nice |
Accel Solutions and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Nice
The main advantage of trading using opposite Accel Solutions and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Accel Solutions vs. Isras Investment | Accel Solutions vs. Analyst IMS Investment | Accel Solutions vs. Discount Investment Corp | Accel Solutions vs. Veridis Environment |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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