Correlation Between Accsys Technologies and Check Point
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on Accsys Technologies and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Check Point.
Diversification Opportunities for Accsys Technologies and Check Point
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Accsys and Check is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies PLC and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Check Point go up and down completely randomly.
Pair Corralation between Accsys Technologies and Check Point
Assuming the 90 days trading horizon Accsys Technologies PLC is expected to generate 1.17 times more return on investment than Check Point. However, Accsys Technologies is 1.17 times more volatile than Check Point Software. It trades about -0.01 of its potential returns per unit of risk. Check Point Software is currently generating about -0.17 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 (120.00) from holding Accsys Technologies PLC or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies PLC vs. Check Point Software
Performance |
| Timeline |
| Accsys Technologies PLC |
| Check Point Software |
Accsys Technologies and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Check Point
The main advantage of trading using opposite Accsys Technologies and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's 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 |
| Check Point vs. Toyota Motor Corp | Check Point vs. OTP Bank Nyrt | Check Point vs. Cognizant Technology Solutions | Check Point vs. Lendinvest PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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