Correlation Between NEWELL RUBBERMAID and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID and ACCSYS TECHPLC 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 NEWELL RUBBERMAID and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on NEWELL RUBBERMAID and ACCSYS TECHPLC 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 NEWELL RUBBERMAID with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and ACCSYS TECHPLC.
Diversification Opportunities for NEWELL RUBBERMAID and ACCSYS TECHPLC
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEWELL and ACCSYS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and ACCSYS TECHPLC
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 1.32 times more return on investment than ACCSYS TECHPLC. However, NEWELL RUBBERMAID is 1.32 times more volatile than ACCSYS TECHPLC EO. It trades about 0.0 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.01 per unit of risk. If you would invest 1,200 in NEWELL RUBBERMAID on September 3, 2024 and sell it today you would lose (307.00) from holding NEWELL RUBBERMAID or give up 25.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| ACCSYS TECHPLC EO |
NEWELL RUBBERMAID and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and ACCSYS TECHPLC
The main advantage of trading using opposite NEWELL RUBBERMAID and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID position performs unexpectedly, ACCSYS TECHPLC 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 TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| NEWELL RUBBERMAID vs. ANTA SPORTS PRODUCT | NEWELL RUBBERMAID vs. EIDESVIK OFFSHORE NK | NEWELL RUBBERMAID vs. SIEM OFFSHORE NEW | NEWELL RUBBERMAID vs. WT OFFSHORE |
| ACCSYS TECHPLC vs. West Fraser Timber | ACCSYS TECHPLC vs. UFP Industries | ACCSYS TECHPLC vs. Superior Plus Corp | ACCSYS TECHPLC vs. NMI Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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