Correlation Between SR Accord and Telsys
Can any of the company-specific risk be diversified away by investing in both SR Accord and Telsys 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 SR Accord and Telsys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SR Accord and Telsys, you can compare the effects of market volatilities on SR Accord and Telsys 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 SR Accord with a short position of Telsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of SR Accord and Telsys.
Diversification Opportunities for SR Accord and Telsys
Very weak diversification
The 3 months correlation between SRAC and Telsys is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SR Accord and Telsys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telsys and SR Accord 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 SR Accord are associated (or correlated) with Telsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telsys has no effect on the direction of SR Accord i.e., SR Accord and Telsys go up and down completely randomly.
Pair Corralation between SR Accord and Telsys
Assuming the 90 days trading horizon SR Accord is expected to generate 1.05 times more return on investment than Telsys. However, SR Accord is 1.05 times more volatile than Telsys. It trades about 0.04 of its potential returns per unit of risk. Telsys is currently generating about 0.03 per unit of risk. If you would invest 329,913 in SR Accord on November 2, 2024 and sell it today you would earn a total of 125,587 from holding SR Accord or generate 38.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SR Accord vs. Telsys
Performance |
| Timeline |
| SR Accord |
| Telsys |
SR Accord and Telsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SR Accord and Telsys
The main advantage of trading using opposite SR Accord and Telsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SR Accord position performs unexpectedly, Telsys 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 Telsys will offset losses from the drop in Telsys' long position.| SR Accord vs. EN Shoham Business | SR Accord vs. Rani Zim Shopping | SR Accord vs. Mivtach Shamir | SR Accord vs. Accel Solutions Group |
| Telsys vs. Automatic Bank Services | Telsys vs. EN Shoham Business | Telsys vs. Rapac Communication Infrastructure | Telsys vs. Qualitau |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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