Correlation Between Accelleron Industries and Enviri

Can any of the company-specific risk be diversified away by investing in both Accelleron Industries and Enviri 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 Accelleron Industries and Enviri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accelleron Industries AG and Enviri, you can compare the effects of market volatilities on Accelleron Industries and Enviri 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 Accelleron Industries with a short position of Enviri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelleron Industries and Enviri.

Diversification Opportunities for Accelleron Industries and Enviri

0.37

Correlation Coefficient

Accelleron Industries  Enviri

Weak diversification

The 3 months correlation between Accelleron and Enviri is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Accelleron Industries AG and Enviri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enviri and Accelleron Industries 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 Accelleron Industries AG are associated (or correlated) with Enviri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enviri has no effect on the direction of Accelleron Industries i.e., Accelleron Industries and Enviri go up and down completely randomly.

Pair Corralation between Accelleron Industries and Enviri

Assuming the 90 days trading horizon Accelleron Industries AG is expected to under-perform the Enviri. But the stock apears to be less risky and, when comparing its historical volatility, Accelleron Industries AG is 2.54 times less risky than Enviri. The stock trades about -0.13 of its potential returns per unit of risk. The Enviri is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  770.00  in Enviri on December 31, 2024 and sell it today you would lose (105.00) from holding Enviri or give up 13.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Accelleron Industries AG  vs.  Enviri

Accelleron Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accelleron Industries AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Enviri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enviri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Accelleron Industries and Enviri

The main advantage of trading using opposite Accelleron Industries and Enviri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelleron Industries position performs unexpectedly, Enviri 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 Enviri will offset losses from the drop in Enviri's long position.

The idea behind Accelleron Industries AG and Enviri pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.