Correlation Between Accsys Technologies and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Flow Traders 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 Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies and Flow Traders BV, you can compare the effects of market volatilities on Accsys Technologies and Flow Traders 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 Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Flow Traders.
Diversification Opportunities for Accsys Technologies and Flow Traders
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accsys and Flow is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and Flow Traders BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders BV 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 are associated (or correlated) with Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders BV has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Flow Traders go up and down completely randomly.
Pair Corralation between Accsys Technologies and Flow Traders
Assuming the 90 days trading horizon Accsys Technologies is expected to under-perform the Flow Traders. But the stock apears to be less risky and, when comparing its historical volatility, Accsys Technologies is 1.04 times less risky than Flow Traders. The stock trades about -0.04 of its potential returns per unit of risk. The Flow Traders BV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,976 in Flow Traders BV on September 1, 2024 and sell it today you would earn a total of 134.00 from holding Flow Traders BV or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies vs. Flow Traders BV
Performance |
| Timeline |
| Accsys Technologies |
| Flow Traders BV |
Accsys Technologies and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Flow Traders
The main advantage of trading using opposite Accsys Technologies and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Flow Traders 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 Flow Traders will offset losses from the drop in Flow Traders' long position.| Accsys Technologies vs. Avantium Holding BV | Accsys Technologies vs. AMG Advanced Metallurgical | Accsys Technologies vs. Pharming Group NV | Accsys Technologies vs. Koninklijke BAM Groep |
| Flow Traders vs. Aegon NV | Flow Traders vs. ABN Amro Group | Flow Traders vs. Koninklijke Philips NV | Flow Traders vs. Unilever PLC |
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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