Correlation Between Accord Financial and Hut 8

Can any of the company-specific risk be diversified away by investing in both Accord Financial and Hut 8 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 Accord Financial and Hut 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accord Financial Corp and Hut 8 Mining, you can compare the effects of market volatilities on Accord Financial and Hut 8 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 Accord Financial with a short position of Hut 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accord Financial and Hut 8.

Diversification Opportunities for Accord Financial and Hut 8

0.19

Correlation Coefficient

Accord Financial  Hut 8

Average diversification

The 3 months correlation between Accord and Hut is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Accord Financial Corp and Hut 8 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hut 8 Mining and Accord Financial 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 Accord Financial Corp are associated (or correlated) with Hut 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hut 8 Mining has no effect on the direction of Accord Financial i.e., Accord Financial and Hut 8 go up and down completely randomly.

Pair Corralation between Accord Financial and Hut 8

Assuming the 90 days trading horizon Accord Financial Corp is expected to generate 0.41 times more return on investment than Hut 8. However, Accord Financial Corp is 2.46 times less risky than Hut 8. It trades about 0.0 of its potential returns per unit of risk. Hut 8 Mining is currently generating about -0.11 per unit of risk. If you would invest  380.00  in Accord Financial Corp on December 21, 2024 and sell it today you would lose (6.00) from holding Accord Financial Corp or give up 1.58% of portfolio value over 90 days.

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

Accord Financial Corp  vs.  Hut 8 Mining

Accord Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accord Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Accord Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Hut 8 Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hut 8 Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Accord Financial and Hut 8

The main advantage of trading using opposite Accord Financial and Hut 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accord Financial position performs unexpectedly, Hut 8 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 Hut 8 will offset losses from the drop in Hut 8's long position.

The idea behind Accord Financial Corp and Hut 8 Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.