Correlation Between Actinogen Medical and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Accent Resources 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 Actinogen Medical and Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Accent Resources NL, you can compare the effects of market volatilities on Actinogen Medical and Accent Resources 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 Actinogen Medical with a short position of Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Accent Resources.
Diversification Opportunities for Actinogen Medical and Accent Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Actinogen and Accent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Accent Resources go up and down completely randomly.
Pair Corralation between Actinogen Medical and Accent Resources
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 2.38 times more return on investment than Accent Resources. However, Actinogen Medical is 2.38 times more volatile than Accent Resources NL. It trades about 0.06 of its potential returns per unit of risk. Accent Resources NL is currently generating about -0.01 per unit of risk. If you would invest 2.20 in Actinogen Medical on September 12, 2024 and sell it today you would earn a total of 0.90 from holding Actinogen Medical or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Accent Resources NL
Performance |
| Timeline |
| Actinogen Medical |
| Accent Resources |
Actinogen Medical and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Accent Resources
The main advantage of trading using opposite Actinogen Medical and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Actinogen Medical vs. CSL | Actinogen Medical vs. Tamawood | Actinogen Medical vs. Cochlear | Actinogen Medical vs. Rea Group |
| Accent Resources vs. Chalice Mining Limited | Accent Resources vs. M3 Mining | Accent Resources vs. Actinogen Medical | Accent Resources vs. Medical Developments International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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