Correlation Between Access Power and Crexendo
Can any of the company-specific risk be diversified away by investing in both Access Power and Crexendo 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 Access Power and Crexendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Power Co and Crexendo, you can compare the effects of market volatilities on Access Power and Crexendo 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 Access Power with a short position of Crexendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Power and Crexendo.
Diversification Opportunities for Access Power and Crexendo
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Access and Crexendo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Access Power Co and Crexendo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crexendo and Access Power 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 Access Power Co are associated (or correlated) with Crexendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crexendo has no effect on the direction of Access Power i.e., Access Power and Crexendo go up and down completely randomly.
Pair Corralation between Access Power and Crexendo
Given the investment horizon of 90 days Access Power Co is expected to generate 11.29 times more return on investment than Crexendo. However, Access Power is 11.29 times more volatile than Crexendo. It trades about 0.22 of its potential returns per unit of risk. Crexendo is currently generating about -0.02 per unit of risk. If you would invest 0.10 in Access Power Co on September 1, 2024 and sell it today you would earn a total of 0.07 from holding Access Power Co or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Power Co vs. Crexendo
Performance |
| Timeline |
| Access Power |
| Crexendo |
Access Power and Crexendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Power and Crexendo
The main advantage of trading using opposite Access Power and Crexendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Power position performs unexpectedly, Crexendo 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 Crexendo will offset losses from the drop in Crexendo's long position.| Access Power vs. BCE Inc | Access Power vs. Axiologix | Access Power vs. Advanced Info Service | Access Power vs. American Nortel Communications |
| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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