Correlation Between Nice and Accel Solutions
Can any of the company-specific risk be diversified away by investing in both Nice 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 Nice and Accel Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice and Accel Solutions Group, you can compare the effects of market volatilities on Nice 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 Nice with a short position of Accel Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice and Accel Solutions.
Diversification Opportunities for Nice and Accel Solutions
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nice and Accel is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nice 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 Nice 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 Nice 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 Nice i.e., Nice and Accel Solutions go up and down completely randomly.
Pair Corralation between Nice and Accel Solutions
Assuming the 90 days trading horizon Nice is expected to under-perform the Accel Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Nice is 1.04 times less risky than Accel Solutions. The stock trades about -0.16 of its potential returns per unit of risk. The Accel Solutions Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 17,020 in Accel Solutions Group on December 1, 2024 and sell it today you would earn a total of 1,080 from holding Accel Solutions Group or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice vs. Accel Solutions Group
Performance |
| Timeline |
| Nice |
| Accel Solutions Group |
Nice and Accel Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice and Accel Solutions
The main advantage of trading using opposite Nice and Accel Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice 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.| Nice vs. Elbit Systems | Nice vs. Tower Semiconductor | Nice vs. Bank Leumi Le Israel | Nice vs. Teva Pharmaceutical Industries |
| Accel Solutions vs. Multi Retail Group | Accel Solutions vs. Hiron Trade Investments Industrial | Accel Solutions vs. Clal Biotechnology Industries | Accel Solutions vs. Global Knafaim Leasing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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