Correlation Between Allfunds and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Allfunds and Accsys Technologies 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 Allfunds and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allfunds Group and Accsys Technologies, you can compare the effects of market volatilities on Allfunds and Accsys Technologies 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 Allfunds with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allfunds and Accsys Technologies.
Diversification Opportunities for Allfunds and Accsys Technologies
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allfunds and Accsys is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Allfunds Group and Accsys Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies and Allfunds 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 Allfunds Group are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies has no effect on the direction of Allfunds i.e., Allfunds and Accsys Technologies go up and down completely randomly.
Pair Corralation between Allfunds and Accsys Technologies
Assuming the 90 days trading horizon Allfunds Group is expected to generate 0.95 times more return on investment than Accsys Technologies. However, Allfunds Group is 1.05 times less risky than Accsys Technologies. It trades about -0.01 of its potential returns per unit of risk. Accsys Technologies is currently generating about -0.01 per unit of risk. If you would invest 690.00 in Allfunds Group on August 30, 2024 and sell it today you would lose (153.00) from holding Allfunds Group or give up 22.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allfunds Group vs. Accsys Technologies
Performance |
| Timeline |
| Allfunds Group |
| Accsys Technologies |
Allfunds and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allfunds and Accsys Technologies
The main advantage of trading using opposite Allfunds and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allfunds position performs unexpectedly, Accsys Technologies 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.| Allfunds vs. Instalco Intressenter AB | Allfunds vs. Euronext NV | Allfunds vs. Linea Directa Aseguradora | Allfunds vs. Pershing Square Holdings |
| Accsys Technologies vs. Avantium Holding BV | Accsys Technologies vs. AMG Advanced Metallurgical | Accsys Technologies vs. Pharming Group NV | Accsys Technologies vs. CM NV |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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