Correlation Between Accentis and Immolease Trust

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

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

Diversification Opportunities for Accentis and Immolease Trust

0.0

Correlation Coefficient

Accentis  Immolease Trust

Pay attention - limited upside

The 3 months correlation between Accentis and Immolease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accentis and Immolease Trust NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immolease Trust NV and Accentis 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 Accentis are associated (or correlated) with Immolease Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immolease Trust NV has no effect on the direction of Accentis i.e., Accentis and Immolease Trust go up and down completely randomly.

Pair Corralation between Accentis and Immolease Trust

Assuming the 90 days trading horizon Accentis is expected to generate 2.19 times more return on investment than Immolease Trust. However, Accentis is 2.19 times more volatile than Immolease Trust NV. It trades about 0.01 of its potential returns per unit of risk. Immolease Trust NV is currently generating about -0.17 per unit of risk. If you would invest  2.70  in Accentis on September 12, 2024 and sell it today you would lose (0.05) from holding Accentis or give up 1.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	63.08%
Values	Daily Returns

Accentis  vs.  Immolease Trust NV

Accentis

Risk-Adjusted Performance

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Weak

Over the last 90 days Accentis has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Accentis is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Immolease Trust NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immolease Trust NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Accentis and Immolease Trust

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

The idea behind Accentis and Immolease Trust NV 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.