Correlation Between Kaufman Et and Accsys Technologies

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

By analyzing existing cross correlation between Kaufman Et Broad and Accsys Technologies PLC, you can compare the effects of market volatilities on Kaufman Et 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 Kaufman Et with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Accsys Technologies.

Diversification Opportunities for Kaufman Et and Accsys Technologies

0.68

Correlation Coefficient

Kaufman Et  Accsys Technologies

Poor diversification

The 3 months correlation between Kaufman and Accsys is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad 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 Kaufman Et 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 Kaufman Et Broad 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 Kaufman Et i.e., Kaufman Et and Accsys Technologies go up and down completely randomly.

Pair Corralation between Kaufman Et and Accsys Technologies

Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.76 times more return on investment than Accsys Technologies. However, Kaufman Et Broad is 1.32 times less risky than Accsys Technologies. It trades about 0.04 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.05 per unit of risk. If you would invest  2,517  in Kaufman Et Broad on October 24, 2024 and sell it today you would earn a total of  626.00  from holding Kaufman Et Broad or generate 24.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.75%
Values	Daily Returns

Kaufman Et Broad  vs.  Accsys Technologies PLC

Kaufman Et Broad

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaufman Et Broad 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.

Accsys Technologies PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accsys Technologies PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Kaufman Et and Accsys Technologies

The main advantage of trading using opposite Kaufman Et and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et 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.

The idea behind Kaufman Et Broad and Accsys Technologies PLC 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.