Correlation Between Accel Solutions and Teuza A
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Teuza A 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 Teuza A 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 Teuza A Fairchild, you can compare the effects of market volatilities on Accel Solutions and Teuza A 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 Teuza A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Teuza A.
Diversification Opportunities for Accel Solutions and Teuza A
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Accel and Teuza is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Teuza A Fairchild in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teuza A Fairchild 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 Teuza A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teuza A Fairchild has no effect on the direction of Accel Solutions i.e., Accel Solutions and Teuza A go up and down completely randomly.
Pair Corralation between Accel Solutions and Teuza A
Assuming the 90 days trading horizon Accel Solutions Group is expected to generate 0.82 times more return on investment than Teuza A. However, Accel Solutions Group is 1.22 times less risky than Teuza A. It trades about -0.09 of its potential returns per unit of risk. Teuza A Fairchild is currently generating about -0.14 per unit of risk. If you would invest 13,610 in Accel Solutions Group on September 3, 2024 and sell it today you would lose (700.00) from holding Accel Solutions Group or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Teuza A Fairchild
Performance |
| Timeline |
| Accel Solutions Group |
| Teuza A Fairchild |
Accel Solutions and Teuza A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Teuza A
The main advantage of trading using opposite Accel Solutions and Teuza A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Teuza A 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 Teuza A will offset losses from the drop in Teuza A'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 |
| Teuza A vs. Bank Hapoalim | Teuza A vs. Israel Discount Bank | Teuza A vs. First International Bank | Teuza A vs. Elbit Systems |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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