Correlation Between Accsys Technologies and Yum Brands
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Yum Brands 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 Yum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies PLC and Yum Brands, you can compare the effects of market volatilities on Accsys Technologies and Yum Brands 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 Yum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Yum Brands.
Diversification Opportunities for Accsys Technologies and Yum Brands
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accsys and Yum is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies PLC and Yum Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum Brands 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 PLC are associated (or correlated) with Yum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum Brands has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Yum Brands go up and down completely randomly.
Pair Corralation between Accsys Technologies and Yum Brands
Assuming the 90 days trading horizon Accsys Technologies PLC is expected to under-perform the Yum Brands. But the stock apears to be less risky and, when comparing its historical volatility, Accsys Technologies PLC is 1.88 times less risky than Yum Brands. The stock trades about -0.03 of its potential returns per unit of risk. The Yum Brands is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13,074 in Yum Brands on September 1, 2024 and sell it today you would earn a total of 844.00 from holding Yum Brands or generate 6.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.94% |
Values | Daily Returns |
Accsys Technologies PLC vs. Yum Brands
Performance |
Timeline |
Accsys Technologies PLC |
Yum Brands |
Accsys Technologies and Yum Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accsys Technologies and Yum Brands
The main advantage of trading using opposite Accsys Technologies and Yum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Yum Brands 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 Yum Brands will offset losses from the drop in Yum Brands' long position.Accsys Technologies vs. UNIQA Insurance Group | Accsys Technologies vs. Allianz Technology Trust | Accsys Technologies vs. Eastman Chemical Co | Accsys Technologies vs. Flow Traders NV |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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