Correlation Between Accsys Technologies and Interfor
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Interfor 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 Accsys Technologies and Interfor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies PLC and Interfor, you can compare the effects of market volatilities on Accsys Technologies and Interfor 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 Accsys Technologies with a short position of Interfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Interfor.
Diversification Opportunities for Accsys Technologies and Interfor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Accsys and Interfor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies PLC and Interfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interfor and Accsys Technologies 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 Accsys Technologies PLC are associated (or correlated) with Interfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interfor has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Interfor go up and down completely randomly.
Pair Corralation between Accsys Technologies and Interfor
Assuming the 90 days horizon Accsys Technologies PLC is expected to under-perform the Interfor. But the pink sheet apears to be less risky and, when comparing its historical volatility, Accsys Technologies PLC is 3.84 times less risky than Interfor. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Interfor is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,773 in Interfor on August 25, 2024 and sell it today you would lose (395.00) from holding Interfor or give up 22.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies PLC vs. Interfor
Performance |
| Timeline |
| Accsys Technologies PLC |
| Interfor |
Accsys Technologies and Interfor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Interfor
The main advantage of trading using opposite Accsys Technologies and Interfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Interfor 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 Interfor will offset losses from the drop in Interfor's long position.| Accsys Technologies vs. Interfor | Accsys Technologies vs. Western Forest Products | Accsys Technologies vs. Stella Jones | Accsys Technologies vs. Simpson Manufacturing |
| Interfor vs. Svenska Cellulosa Aktiebolaget | Interfor vs. Western Forest Products | Interfor vs. Stella Jones | Interfor vs. Simpson Manufacturing |
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 Directory module to find actively traded commodities issued by global exchanges.
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