Correlation Between Fleetcor Technologies and ACI Worldwide
Can any of the company-specific risk be diversified away by investing in both Fleetcor Technologies and ACI Worldwide 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 Fleetcor Technologies and ACI Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fleetcor Technologies and ACI Worldwide, you can compare the effects of market volatilities on Fleetcor Technologies and ACI Worldwide 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 Fleetcor Technologies with a short position of ACI Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fleetcor Technologies and ACI Worldwide.
Diversification Opportunities for Fleetcor Technologies and ACI Worldwide
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fleetcor and ACI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fleetcor Technologies and ACI Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACI Worldwide and Fleetcor 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 Fleetcor Technologies are associated (or correlated) with ACI Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACI Worldwide has no effect on the direction of Fleetcor Technologies i.e., Fleetcor Technologies and ACI Worldwide go up and down completely randomly.
Pair Corralation between Fleetcor Technologies and ACI Worldwide
If you would invest 4,949 in ACI Worldwide on September 2, 2024 and sell it today you would earn a total of 733.00 from holding ACI Worldwide or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fleetcor Technologies vs. ACI Worldwide
Performance |
| Timeline |
| Fleetcor Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ACI Worldwide |
Fleetcor Technologies and ACI Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fleetcor Technologies and ACI Worldwide
The main advantage of trading using opposite Fleetcor Technologies and ACI Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fleetcor Technologies position performs unexpectedly, ACI Worldwide 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 ACI Worldwide will offset losses from the drop in ACI Worldwide's long position.| Fleetcor Technologies vs. Fast Retailing Co | Fleetcor Technologies vs. Kite Realty Group | Fleetcor Technologies vs. Philip Morris International | Fleetcor Technologies vs. Getty Realty |
| ACI Worldwide vs. NetScout Systems | ACI Worldwide vs. Consensus Cloud Solutions | ACI Worldwide vs. CSG Systems International | ACI Worldwide vs. Remitly Global |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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