Correlation Between Accsys Technologies and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies and Sligro Food Group, you can compare the effects of market volatilities on Accsys Technologies and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Sligro Food.
Diversification Opportunities for Accsys Technologies and Sligro Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Accsys and Sligro is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Sligro Food go up and down completely randomly.
Pair Corralation between Accsys Technologies and Sligro Food
Assuming the 90 days trading horizon Accsys Technologies is expected to generate 1.82 times more return on investment than Sligro Food. However, Accsys Technologies is 1.82 times more volatile than Sligro Food Group. It trades about -0.06 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.19 per unit of risk. If you would invest 64.00 in Accsys Technologies on September 12, 2024 and sell it today you would lose (6.00) from holding Accsys Technologies or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies vs. Sligro Food Group
Performance |
| Timeline |
| Accsys Technologies |
| Sligro Food Group |
Accsys Technologies and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Sligro Food
The main advantage of trading using opposite Accsys Technologies and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food'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 |
| Sligro Food vs. Unilever PLC | Sligro Food vs. Koninklijke Philips NV | Sligro Food vs. NN Group NV | Sligro Food vs. ING Groep 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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