Correlation Between ACCSYS TECHPLC and Ströer SE

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

By analyzing existing cross correlation between ACCSYS TECHPLC EO and Strer SE Co, you can compare the effects of market volatilities on ACCSYS TECHPLC and Ströer SE 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 ACCSYS TECHPLC with a short position of Ströer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and Ströer SE.

Diversification Opportunities for ACCSYS TECHPLC and Ströer SE

-0.53

Correlation Coefficient

ACCSYS TECHPLC  Ströer SE

Excellent diversification

The 3 months correlation between ACCSYS and Ströer is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ströer SE and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with Ströer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ströer SE has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and Ströer SE go up and down completely randomly.

Pair Corralation between ACCSYS TECHPLC and Ströer SE

Assuming the 90 days horizon ACCSYS TECHPLC is expected to generate 57.32 times less return on investment than Ströer SE. But when comparing it to its historical volatility, ACCSYS TECHPLC EO is 1.07 times less risky than Ströer SE. It trades about 0.0 of its potential returns per unit of risk. Strer SE Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  4,624  in Strer SE Co on December 21, 2024 and sell it today you would earn a total of  1,181  from holding Strer SE Co or generate 25.54% return on investment over 90 days.

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

ACCSYS TECHPLC EO  vs.  Strer SE Co

ACCSYS TECHPLC EO

Risk-Adjusted Performance

Very Weak

Over the last 90 days ACCSYS TECHPLC EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ACCSYS TECHPLC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ströer SE

Risk-Adjusted Performance

OK

Over the last 90 days Strer SE Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Ströer SE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACCSYS TECHPLC and Ströer SE

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

The idea behind ACCSYS TECHPLC EO and Strer SE Co 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..