Correlation Between Accel Solutions and Unitronics
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Unitronics 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 Unitronics 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 Unitronics, you can compare the effects of market volatilities on Accel Solutions and Unitronics 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 Unitronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Unitronics.
Diversification Opportunities for Accel Solutions and Unitronics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accel and Unitronics is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Unitronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronics 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 Unitronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronics has no effect on the direction of Accel Solutions i.e., Accel Solutions and Unitronics go up and down completely randomly.
Pair Corralation between Accel Solutions and Unitronics
Assuming the 90 days trading horizon Accel Solutions Group is expected to generate 1.15 times more return on investment than Unitronics. However, Accel Solutions is 1.15 times more volatile than Unitronics. It trades about 0.15 of its potential returns per unit of risk. Unitronics is currently generating about 0.03 per unit of risk. If you would invest 12,010 in Accel Solutions Group on December 31, 2024 and sell it today you would earn a total of 6,010 from holding Accel Solutions Group or generate 50.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Unitronics
Performance |
| Timeline |
| Accel Solutions Group |
| Unitronics |
Accel Solutions and Unitronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Unitronics
The main advantage of trading using opposite Accel Solutions and Unitronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Unitronics 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 Unitronics will offset losses from the drop in Unitronics' long position.| Accel Solutions vs. Orbit Technologies | ||
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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