Correlation Between Falcon Oil and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Falcon Oil 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 Falcon Oil and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Oil Gas and Accsys Technologies PLC, you can compare the effects of market volatilities on Falcon Oil 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 Falcon Oil with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Oil and Accsys Technologies.
Diversification Opportunities for Falcon Oil and Accsys Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Falcon and Accsys is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Oil Gas 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 Falcon Oil 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 Falcon Oil Gas 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 Falcon Oil i.e., Falcon Oil and Accsys Technologies go up and down completely randomly.
Pair Corralation between Falcon Oil and Accsys Technologies
Assuming the 90 days trading horizon Falcon Oil Gas is expected to under-perform the Accsys Technologies. In addition to that, Falcon Oil is 1.5 times more volatile than Accsys Technologies PLC. It trades about -0.05 of its total potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.05 per unit of volatility. If you would invest 6,530 in Accsys Technologies PLC on September 19, 2024 and sell it today you would lose (1,940) from holding Accsys Technologies PLC or give up 29.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Oil Gas vs. Accsys Technologies PLC
Performance |
| Timeline |
| Falcon Oil Gas |
| Accsys Technologies PLC |
Falcon Oil and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Oil and Accsys Technologies
The main advantage of trading using opposite Falcon Oil and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Oil 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.| Falcon Oil vs. Roper Technologies | Falcon Oil vs. Lundin Mining Corp | Falcon Oil vs. Griffin Mining | Falcon Oil vs. Endeavour Mining Corp |
| Accsys Technologies vs. Tlou Energy | Accsys Technologies vs. Rockfire Resources plc | Accsys Technologies vs. Ikigai Ventures | Accsys Technologies vs. Falcon Oil Gas |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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