Correlation Between Andrew Peller and Accord Financial
Can any of the company-specific risk be diversified away by investing in both Andrew Peller and Accord Financial 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 Andrew Peller and Accord Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andrew Peller Limited and Accord Financial Corp, you can compare the effects of market volatilities on Andrew Peller and Accord Financial 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 Andrew Peller with a short position of Accord Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrew Peller and Accord Financial.
Diversification Opportunities for Andrew Peller and Accord Financial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Andrew and Accord is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Andrew Peller Limited and Accord Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accord Financial Corp and Andrew Peller 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 Andrew Peller Limited are associated (or correlated) with Accord Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accord Financial Corp has no effect on the direction of Andrew Peller i.e., Andrew Peller and Accord Financial go up and down completely randomly.
Pair Corralation between Andrew Peller and Accord Financial
Assuming the 90 days trading horizon Andrew Peller Limited is expected to generate 0.8 times more return on investment than Accord Financial. However, Andrew Peller Limited is 1.24 times less risky than Accord Financial. It trades about 0.0 of its potential returns per unit of risk. Accord Financial Corp is currently generating about -0.06 per unit of risk. If you would invest 431.00 in Andrew Peller Limited on September 14, 2024 and sell it today you would lose (16.00) from holding Andrew Peller Limited or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andrew Peller Limited vs. Accord Financial Corp
Performance |
| Timeline |
| Andrew Peller Limited |
| Accord Financial Corp |
Andrew Peller and Accord Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andrew Peller and Accord Financial
The main advantage of trading using opposite Andrew Peller and Accord Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrew Peller position performs unexpectedly, Accord Financial 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 Accord Financial will offset losses from the drop in Accord Financial's long position.| Andrew Peller vs. Corby Spirit and | Andrew Peller vs. Stella Jones | Andrew Peller vs. Transcontinental | Andrew Peller vs. CCL Industries |
| Accord Financial vs. Algoma Central | Accord Financial vs. Chesswood Group Limited | Accord Financial vs. Clairvest Group | Accord Financial vs. Clarke Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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