Correlation Between Accel Solutions and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and EN Shoham 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 EN Shoham 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 EN Shoham Business, you can compare the effects of market volatilities on Accel Solutions and EN Shoham 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 EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and EN Shoham.
Diversification Opportunities for Accel Solutions and EN Shoham
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Accel and SHOM is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business 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 EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of Accel Solutions i.e., Accel Solutions and EN Shoham go up and down completely randomly.
Pair Corralation between Accel Solutions and EN Shoham
Assuming the 90 days trading horizon Accel Solutions is expected to generate 22.59 times less return on investment than EN Shoham. But when comparing it to its historical volatility, Accel Solutions Group is 2.07 times less risky than EN Shoham. It trades about 0.05 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 78,270 in EN Shoham Business on October 22, 2024 and sell it today you would earn a total of 15,390 from holding EN Shoham Business or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. EN Shoham Business
Performance |
| Timeline |
| Accel Solutions Group |
| EN Shoham Business |
Accel Solutions and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and EN Shoham
The main advantage of trading using opposite Accel Solutions and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham's long position.| Accel Solutions vs. Blender Financial Technologies | Accel Solutions vs. B Communications | Accel Solutions vs. Suny Cellular Communication | Accel Solutions vs. Electreon Wireless |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |