Correlation Between Accsys Technologies and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and SBM Offshore 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 SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies and SBM Offshore NV, you can compare the effects of market volatilities on Accsys Technologies and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and SBM Offshore.
Diversification Opportunities for Accsys Technologies and SBM Offshore
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accsys and SBM is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and SBM Offshore go up and down completely randomly.
Pair Corralation between Accsys Technologies and SBM Offshore
Assuming the 90 days trading horizon Accsys Technologies is expected to under-perform the SBM Offshore. In addition to that, Accsys Technologies is 1.65 times more volatile than SBM Offshore NV. It trades about 0.0 of its total potential returns per unit of risk. SBM Offshore NV is currently generating about 0.04 per unit of volatility. If you would invest 1,316 in SBM Offshore NV on September 4, 2024 and sell it today you would earn a total of 364.00 from holding SBM Offshore NV or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies vs. SBM Offshore NV
Performance |
| Timeline |
| Accsys Technologies |
| SBM Offshore NV |
Accsys Technologies and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and SBM Offshore
The main advantage of trading using opposite Accsys Technologies and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| Accsys Technologies vs. Avantium Holding BV | Accsys Technologies vs. AMG Advanced Metallurgical | Accsys Technologies vs. Pharming Group NV | Accsys Technologies vs. CM NV |
| SBM Offshore vs. Fugro NV | SBM Offshore vs. Koninklijke Vopak NV | SBM Offshore vs. Randstad NV | SBM Offshore vs. Aalberts Industries 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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