Correlation Between Infrastrutture Wireless and Accesso Technology

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

By analyzing existing cross correlation between Infrastrutture Wireless Italiane and Accesso Technology Group, you can compare the effects of market volatilities on Infrastrutture Wireless and Accesso Technology 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 Infrastrutture Wireless with a short position of Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infrastrutture Wireless and Accesso Technology.

Diversification Opportunities for Infrastrutture Wireless and Accesso Technology

0.49

Correlation Coefficient

Infrastrutture Wireless  Accesso Technology

Very weak diversification

The 3 months correlation between Infrastrutture and Accesso is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Infrastrutture Wireless Italia and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and Infrastrutture Wireless 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 Infrastrutture Wireless Italiane are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Infrastrutture Wireless i.e., Infrastrutture Wireless and Accesso Technology go up and down completely randomly.

Pair Corralation between Infrastrutture Wireless and Accesso Technology

Assuming the 90 days trading horizon Infrastrutture Wireless Italiane is expected to generate 0.67 times more return on investment than Accesso Technology. However, Infrastrutture Wireless Italiane is 1.48 times less risky than Accesso Technology. It trades about -0.02 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.08 per unit of risk. If you would invest  962.00  in Infrastrutture Wireless Italiane on December 27, 2024 and sell it today you would lose (25.00) from holding Infrastrutture Wireless Italiane or give up 2.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Infrastrutture Wireless Italia  vs.  Accesso Technology Group

Infrastrutture Wireless

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infrastrutture Wireless Italiane has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Infrastrutture Wireless is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Accesso Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accesso Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain 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.

Pair Trading with Infrastrutture Wireless and Accesso Technology

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

The idea behind Infrastrutture Wireless Italiane and Accesso Technology Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.