Correlation Between Accsys Technologies and Tetragon Financial
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Tetragon Financial 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 Tetragon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies and Tetragon Financial Group, you can compare the effects of market volatilities on Accsys Technologies and Tetragon Financial 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 Tetragon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Tetragon Financial.
Diversification Opportunities for Accsys Technologies and Tetragon Financial
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accsys and Tetragon is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and Tetragon Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tetragon Financial 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 Tetragon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tetragon Financial has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Tetragon Financial go up and down completely randomly.
Pair Corralation between Accsys Technologies and Tetragon Financial
Assuming the 90 days trading horizon Accsys Technologies is expected to under-perform the Tetragon Financial. In addition to that, Accsys Technologies is 1.89 times more volatile than Tetragon Financial Group. It trades about -0.01 of its total potential returns per unit of risk. Tetragon Financial Group is currently generating about 0.07 per unit of volatility. If you would invest 908.00 in Tetragon Financial Group on August 30, 2024 and sell it today you would earn a total of 407.00 from holding Tetragon Financial Group or generate 44.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.29% |
| Values | Daily Returns |
Accsys Technologies vs. Tetragon Financial Group
Performance |
| Timeline |
| Accsys Technologies |
| Tetragon Financial |
Accsys Technologies and Tetragon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Tetragon Financial
The main advantage of trading using opposite Accsys Technologies and Tetragon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Tetragon Financial 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 Tetragon Financial will offset losses from the drop in Tetragon Financial'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 |
| Tetragon Financial vs. Eurocastle Investment | Tetragon Financial vs. Kendrion NV | Tetragon Financial vs. Brunel International 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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