Correlation Between Accsys Technologies and Raytheon Technologies
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Raytheon Technologies 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 Raytheon Technologies 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 Raytheon Technologies Corp, you can compare the effects of market volatilities on Accsys Technologies and Raytheon Technologies 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 Raytheon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Raytheon Technologies.
Diversification Opportunities for Accsys Technologies and Raytheon Technologies
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Accsys and Raytheon is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies PLC and Raytheon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytheon Technologies 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 Raytheon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytheon Technologies has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Raytheon Technologies go up and down completely randomly.
Pair Corralation between Accsys Technologies and Raytheon Technologies
Assuming the 90 days trading horizon Accsys Technologies PLC is expected to generate 2.55 times more return on investment than Raytheon Technologies. However, Accsys Technologies is 2.55 times more volatile than Raytheon Technologies Corp. It trades about 0.0 of its potential returns per unit of risk. Raytheon Technologies Corp is currently generating about -0.1 per unit of risk. If you would invest 4,855 in Accsys Technologies PLC on August 29, 2024 and sell it today you would lose (80.00) from holding Accsys Technologies PLC or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies PLC vs. Raytheon Technologies Corp
Performance |
| Timeline |
| Accsys Technologies PLC |
| Raytheon Technologies |
Accsys Technologies and Raytheon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Raytheon Technologies
The main advantage of trading using opposite Accsys Technologies and Raytheon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Raytheon Technologies 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 Raytheon Technologies will offset losses from the drop in Raytheon Technologies' long position.| Accsys Technologies vs. Alliance Data Systems | Accsys Technologies vs. Skandinaviska Enskilda Banken | Accsys Technologies vs. MT Bank Corp | Accsys Technologies vs. Synchrony Financial |
| Raytheon Technologies vs. Lendinvest PLC | Raytheon Technologies vs. Neometals | Raytheon Technologies vs. Coor Service Management | Raytheon Technologies vs. Albion Technology General |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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