Correlation Between Deere and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Deere and Accsys 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 Deere and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deere Company and Accsys Technologies PLC, you can compare the effects of market volatilities on Deere and Accsys 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 Deere with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deere and Accsys Technologies.
Diversification Opportunities for Deere and Accsys Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deere and Accsys is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Deere Company and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC and Deere 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 Deere Company are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of Deere i.e., Deere and Accsys Technologies go up and down completely randomly.
Pair Corralation between Deere and Accsys Technologies
Allowing for the 90-day total investment horizon Deere Company is expected to generate 1.13 times more return on investment than Accsys Technologies. However, Deere is 1.13 times more volatile than Accsys Technologies PLC. It trades about 0.22 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.21 per unit of risk. If you would invest 41,235 in Deere Company on August 29, 2024 and sell it today you would earn a total of 4,869 from holding Deere Company or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deere Company vs. Accsys Technologies PLC
Performance |
| Timeline |
| Deere Company |
| Accsys Technologies PLC |
Deere and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deere and Accsys Technologies
The main advantage of trading using opposite Deere and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deere position performs unexpectedly, Accsys 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.| Deere vs. MYR Group | Deere vs. Granite Construction Incorporated | Deere vs. Construction Partners | Deere vs. Great Lakes Dredge |
| Accsys Technologies vs. Fossil Group | Accsys Technologies vs. Coty Inc | Accsys Technologies vs. JD Sports Fashion | Accsys Technologies vs. Verra Mobility Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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