Correlation Between Accelerate Absolute and Harvest Equal
Can any of the company-specific risk be diversified away by investing in both Accelerate Absolute and Harvest Equal 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 Accelerate Absolute and Harvest Equal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Absolute Return and Harvest Equal Weight, you can compare the effects of market volatilities on Accelerate Absolute and Harvest Equal 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 Accelerate Absolute with a short position of Harvest Equal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Absolute and Harvest Equal.
Diversification Opportunities for Accelerate Absolute and Harvest Equal
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accelerate and Harvest is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Absolute Return and Harvest Equal Weight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Equal Weight and Accelerate Absolute 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 Accelerate Absolute Return are associated (or correlated) with Harvest Equal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Equal Weight has no effect on the direction of Accelerate Absolute i.e., Accelerate Absolute and Harvest Equal go up and down completely randomly.
Pair Corralation between Accelerate Absolute and Harvest Equal
Assuming the 90 days trading horizon Accelerate Absolute Return is expected to under-perform the Harvest Equal. In addition to that, Accelerate Absolute is 1.4 times more volatile than Harvest Equal Weight. It trades about -0.13 of its total potential returns per unit of risk. Harvest Equal Weight is currently generating about 0.07 per unit of volatility. If you would invest 1,035 in Harvest Equal Weight on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Harvest Equal Weight or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accelerate Absolute Return vs. Harvest Equal Weight
Performance |
| Timeline |
| Accelerate Absolute |
| Harvest Equal Weight |
Accelerate Absolute and Harvest Equal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate Absolute and Harvest Equal
The main advantage of trading using opposite Accelerate Absolute and Harvest Equal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Absolute position performs unexpectedly, Harvest Equal 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 Harvest Equal will offset losses from the drop in Harvest Equal's long position.| Accelerate Absolute vs. Accelerate Arbitrage | Accelerate Absolute vs. Accelerate OneChoice Alternative | Accelerate Absolute vs. NBI High Yield | Accelerate Absolute vs. NBI Unconstrained Fixed |
| Harvest Equal vs. Harvest Premium Yield | Harvest Equal vs. Harvest Balanced Income | Harvest Equal vs. Harvest Energy Leaders | Harvest Equal vs. Harvest Eli Lilly |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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