Correlation Between Accesso Technology and Alien Metals
Can any of the company-specific risk be diversified away by investing in both Accesso Technology and Alien Metals 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 Accesso Technology and Alien Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accesso Technology Group and Alien Metals, you can compare the effects of market volatilities on Accesso Technology and Alien Metals 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 Accesso Technology with a short position of Alien Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accesso Technology and Alien Metals.
Diversification Opportunities for Accesso Technology and Alien Metals
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Accesso and Alien is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Accesso Technology Group and Alien Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alien Metals and Accesso Technology 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 Accesso Technology Group are associated (or correlated) with Alien Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alien Metals has no effect on the direction of Accesso Technology i.e., Accesso Technology and Alien Metals go up and down completely randomly.
Pair Corralation between Accesso Technology and Alien Metals
Assuming the 90 days trading horizon Accesso Technology Group is expected to generate 0.46 times more return on investment than Alien Metals. However, Accesso Technology Group is 2.18 times less risky than Alien Metals. It trades about -0.03 of its potential returns per unit of risk. Alien Metals is currently generating about -0.05 per unit of risk. If you would invest 82,000 in Accesso Technology Group on October 27, 2024 and sell it today you would lose (33,500) from holding Accesso Technology Group or give up 40.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accesso Technology Group vs. Alien Metals
Performance |
| Timeline |
| Accesso Technology |
| Alien Metals |
Accesso Technology and Alien Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accesso Technology and Alien Metals
The main advantage of trading using opposite Accesso Technology and Alien Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accesso Technology position performs unexpectedly, Alien Metals 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 Alien Metals will offset losses from the drop in Alien Metals' long position.| Accesso Technology vs. Evolution Gaming Group | Accesso Technology vs. Nordic Semiconductor ASA | Accesso Technology vs. Summit Materials Cl | Accesso Technology vs. Elmos Semiconductor SE |
| Alien Metals vs. Infrastrutture Wireless Italiane | Alien Metals vs. Zegona Communications Plc | Alien Metals vs. Zoom Video Communications | Alien Metals vs. Orient Telecoms |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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