Correlation Between Sligro Food and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Sligro Food 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 Sligro Food and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Accsys Technologies, you can compare the effects of market volatilities on Sligro Food 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 Sligro Food with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Accsys Technologies.
Diversification Opportunities for Sligro Food and Accsys Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and Accsys is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Accsys Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies and Sligro Food 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 Sligro Food Group 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 has no effect on the direction of Sligro Food i.e., Sligro Food and Accsys Technologies go up and down completely randomly.
Pair Corralation between Sligro Food and Accsys Technologies
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Accsys Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.82 times less risky than Accsys Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The Accsys Technologies is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Accsys Technologies on September 12, 2024 and sell it today you would lose (6.00) from holding Accsys Technologies or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. Accsys Technologies
Performance |
| Timeline |
| Sligro Food Group |
| Accsys Technologies |
Sligro Food and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Accsys Technologies
The main advantage of trading using opposite Sligro Food and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food 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.| Sligro Food vs. Unilever PLC | Sligro Food vs. Koninklijke Philips NV | Sligro Food vs. NN Group NV | Sligro Food vs. ING Groep NV |
| Accsys Technologies vs. Avantium Holding BV | Accsys Technologies vs. AMG Advanced Metallurgical | Accsys Technologies vs. Pharming Group NV | Accsys Technologies vs. CM NV |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |