Correlation Between Tessenderlo and Accentis
Can any of the company-specific risk be diversified away by investing in both Tessenderlo and Accentis 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 Tessenderlo and Accentis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tessenderlo and Accentis, you can compare the effects of market volatilities on Tessenderlo and Accentis 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 Tessenderlo with a short position of Accentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tessenderlo and Accentis.
Diversification Opportunities for Tessenderlo and Accentis
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tessenderlo and Accentis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tessenderlo and Accentis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accentis and Tessenderlo 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 Tessenderlo are associated (or correlated) with Accentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accentis has no effect on the direction of Tessenderlo i.e., Tessenderlo and Accentis go up and down completely randomly.
Pair Corralation between Tessenderlo and Accentis
Assuming the 90 days trading horizon Tessenderlo is expected to generate 0.6 times more return on investment than Accentis. However, Tessenderlo is 1.66 times less risky than Accentis. It trades about 0.34 of its potential returns per unit of risk. Accentis is currently generating about -0.05 per unit of risk. If you would invest 1,906 in Tessenderlo on November 4, 2024 and sell it today you would earn a total of 199.00 from holding Tessenderlo or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tessenderlo vs. Accentis
Performance |
| Timeline |
| Tessenderlo |
| Accentis |
Tessenderlo and Accentis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tessenderlo and Accentis
The main advantage of trading using opposite Tessenderlo and Accentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tessenderlo position performs unexpectedly, Accentis 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 Accentis will offset losses from the drop in Accentis' long position.| Tessenderlo vs. Ackermans Van Haaren | Tessenderlo vs. NV Bekaert SA | Tessenderlo vs. Groep Brussel Lambert | Tessenderlo vs. Tubize Fin |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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