Correlation Between Access Power and KORE Group

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

By analyzing existing cross correlation between Access Power Co and KORE Group Holdings, you can compare the effects of market volatilities on Access Power and KORE Group 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 Access Power with a short position of KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Power and KORE Group.

Diversification Opportunities for Access Power and KORE Group

0.05

Correlation Coefficient

Access Power  KORE Group

Significant diversification

The 3 months correlation between Access and KORE is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Access Power Co and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and Access Power 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 Access Power Co are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Access Power i.e., Access Power and KORE Group go up and down completely randomly.

Pair Corralation between Access Power and KORE Group

Given the investment horizon of 90 days Access Power Co is expected to generate 2.41 times more return on investment than KORE Group. However, Access Power is 2.41 times more volatile than KORE Group Holdings. It trades about 0.19 of its potential returns per unit of risk. KORE Group Holdings is currently generating about 0.3 per unit of risk. If you would invest  0.09  in Access Power Co on October 7, 2024 and sell it today you would earn a total of  0.05  from holding Access Power Co or generate 55.56% return on investment over 90 days.

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

Access Power Co  vs.  KORE Group Holdings

Access Power

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Access Power Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental indicators, Access Power reported solid returns over the last few months and may actually be approaching a breakup point.

KORE Group Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KORE Group Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, KORE Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Access Power and KORE Group

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

The idea behind Access Power Co and KORE Group Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.