Correlation Between Arrow Electronics and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Arrow Electronics and Accretion Acquisition 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 Arrow Electronics and Accretion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Electronics and Accretion Acquisition Corp, you can compare the effects of market volatilities on Arrow Electronics and Accretion Acquisition 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 Arrow Electronics with a short position of Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Electronics and Accretion Acquisition.
Diversification Opportunities for Arrow Electronics and Accretion Acquisition
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Accretion is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Electronics and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition and Arrow Electronics 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 Arrow Electronics are associated (or correlated) with Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Arrow Electronics i.e., Arrow Electronics and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Arrow Electronics and Accretion Acquisition
Considering the 90-day investment horizon Arrow Electronics is expected to generate 7.1 times more return on investment than Accretion Acquisition. However, Arrow Electronics is 7.1 times more volatile than Accretion Acquisition Corp. It trades about 0.02 of its potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.12 per unit of risk. If you would invest 10,979 in Arrow Electronics on September 3, 2024 and sell it today you would earn a total of 1,281 from holding Arrow Electronics or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.3% |
| Values | Daily Returns |
Arrow Electronics vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Arrow Electronics |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arrow Electronics and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Electronics and Accretion Acquisition
The main advantage of trading using opposite Arrow Electronics and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Electronics position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Arrow Electronics vs. Insight Enterprises | Arrow Electronics vs. Synnex | Arrow Electronics vs. Climb Global Solutions | Arrow Electronics vs. ScanSource |
| Accretion Acquisition vs. NetSol Technologies | Accretion Acquisition vs. Brunswick | Accretion Acquisition vs. Rivian Automotive | Accretion Acquisition vs. Cars 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |