Correlation Between Accel Solutions and Oron Group
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Oron Group 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 Oron Group 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 Oron Group Investments, you can compare the effects of market volatilities on Accel Solutions and Oron Group 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 Oron Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Oron Group.
Diversification Opportunities for Accel Solutions and Oron Group
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Accel and Oron is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Oron Group Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oron Group Investments 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 Oron Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oron Group Investments has no effect on the direction of Accel Solutions i.e., Accel Solutions and Oron Group go up and down completely randomly.
Pair Corralation between Accel Solutions and Oron Group
Assuming the 90 days trading horizon Accel Solutions Group is expected to generate 1.3 times more return on investment than Oron Group. However, Accel Solutions is 1.3 times more volatile than Oron Group Investments. It trades about 0.13 of its potential returns per unit of risk. Oron Group Investments is currently generating about 0.12 per unit of risk. If you would invest 9,770 in Accel Solutions Group on September 3, 2024 and sell it today you would earn a total of 3,140 from holding Accel Solutions Group or generate 32.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Oron Group Investments
Performance |
| Timeline |
| Accel Solutions Group |
| Oron Group Investments |
Accel Solutions and Oron Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Oron Group
The main advantage of trading using opposite Accel Solutions and Oron Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Oron Group 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 Oron Group will offset losses from the drop in Oron Group'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 |
| Oron Group vs. EN Shoham Business | Oron Group vs. Accel Solutions Group | Oron Group vs. Mivtach Shamir | Oron Group vs. Rani Zim Shopping |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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