Correlation Between PureTech Health and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both PureTech Health 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 PureTech Health and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureTech Health plc and Accsys Technologies PLC, you can compare the effects of market volatilities on PureTech Health 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 PureTech Health with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Accsys Technologies.
Diversification Opportunities for PureTech Health and Accsys Technologies
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PureTech and Accsys is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc 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 PureTech Health 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 PureTech Health plc 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 PureTech Health i.e., PureTech Health and Accsys Technologies go up and down completely randomly.
Pair Corralation between PureTech Health and Accsys Technologies
Assuming the 90 days trading horizon PureTech Health plc is expected to generate 0.73 times more return on investment than Accsys Technologies. However, PureTech Health plc is 1.36 times less risky than Accsys Technologies. It trades about 0.12 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.04 per unit of risk. If you would invest 15,600 in PureTech Health plc on August 31, 2024 and sell it today you would earn a total of 1,100 from holding PureTech Health plc or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PureTech Health plc vs. Accsys Technologies PLC
Performance |
| Timeline |
| PureTech Health plc |
| Accsys Technologies PLC |
PureTech Health and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureTech Health and Accsys Technologies
The main advantage of trading using opposite PureTech Health and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureTech Health 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.| PureTech Health vs. JD Sports Fashion | PureTech Health vs. Albion Technology General | PureTech Health vs. Accsys Technologies PLC | PureTech Health vs. Wyndham Hotels Resorts |
| Accsys Technologies vs. Bank of Ireland | Accsys Technologies vs. Ameriprise Financial | Accsys Technologies vs. UNIQA Insurance Group | Accsys Technologies vs. Discover Financial Services |
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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