Correlation Between Electreon Wireless and Accel Solutions
Can any of the company-specific risk be diversified away by investing in both Electreon Wireless and Accel Solutions 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 Electreon Wireless and Accel Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electreon Wireless and Accel Solutions Group, you can compare the effects of market volatilities on Electreon Wireless and Accel Solutions 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 Electreon Wireless with a short position of Accel Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electreon Wireless and Accel Solutions.
Diversification Opportunities for Electreon Wireless and Accel Solutions
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Electreon and Accel is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Electreon Wireless and Accel Solutions Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Solutions Group and Electreon Wireless 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 Electreon Wireless are associated (or correlated) with Accel Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accel Solutions Group has no effect on the direction of Electreon Wireless i.e., Electreon Wireless and Accel Solutions go up and down completely randomly.
Pair Corralation between Electreon Wireless and Accel Solutions
Assuming the 90 days trading horizon Electreon Wireless is expected to generate 2.35 times more return on investment than Accel Solutions. However, Electreon Wireless is 2.35 times more volatile than Accel Solutions Group. It trades about 0.11 of its potential returns per unit of risk. Accel Solutions Group is currently generating about 0.04 per unit of risk. If you would invest 320,000 in Electreon Wireless on September 3, 2024 and sell it today you would earn a total of 1,656,000 from holding Electreon Wireless or generate 517.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electreon Wireless vs. Accel Solutions Group
Performance |
| Timeline |
| Electreon Wireless |
| Accel Solutions Group |
Electreon Wireless and Accel Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electreon Wireless and Accel Solutions
The main advantage of trading using opposite Electreon Wireless and Accel Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electreon Wireless position performs unexpectedly, Accel Solutions 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 Accel Solutions will offset losses from the drop in Accel Solutions' long position.| Electreon Wireless vs. Augwind Energy Tech | Electreon Wireless vs. Enlight Renewable Energy | Electreon Wireless vs. Maytronics | Electreon Wireless vs. Fattal 1998 Holdings |
| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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