Correlation Between Celestica and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Celestica and Accretion Acquisition 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 Celestica and Accretion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Accretion Acquisition Corp, you can compare the effects of market volatilities on Celestica and Accretion Acquisition 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 Celestica with a short position of Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Accretion Acquisition.
Diversification Opportunities for Celestica and Accretion Acquisition
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Celestica and Accretion is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition and Celestica 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 Celestica are associated (or correlated) with Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Celestica i.e., Celestica and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Celestica and Accretion Acquisition
Considering the 90-day investment horizon Celestica is expected to generate 12.04 times more return on investment than Accretion Acquisition. However, Celestica is 12.04 times more volatile than Accretion Acquisition Corp. It trades about 0.16 of its potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.16 per unit of risk. If you would invest 1,274 in Celestica on October 21, 2024 and sell it today you would earn a total of 10,054 from holding Celestica or generate 789.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 23.99% |
| Values | Daily Returns |
Celestica vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Celestica |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Celestica and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Accretion Acquisition
The main advantage of trading using opposite Celestica and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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