Correlation Between DBT SA and Accor S

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Can any of the company-specific risk be diversified away by investing in both DBT SA and Accor S 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 DBT SA and Accor S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBT SA and Accor S A, you can compare the effects of market volatilities on DBT SA and Accor S 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 DBT SA with a short position of Accor S. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBT SA and Accor S.

Diversification Opportunities for DBT SA and Accor S

DBTAccorDiversified AwayDBTAccorDiversified Away100%
-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between DBT and Accor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding DBT SA and Accor S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor S A and DBT SA 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 DBT SA are associated (or correlated) with Accor S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor S A has no effect on the direction of DBT SA i.e., DBT SA and Accor S go up and down completely randomly.

Pair Corralation between DBT SA and Accor S

Assuming the 90 days trading horizon DBT SA is expected to under-perform the Accor S. In addition to that, DBT SA is 2.57 times more volatile than Accor S A. It trades about -0.04 of its total potential returns per unit of risk. Accor S A is currently generating about 0.13 per unit of volatility. If you would invest  4,248  in Accor S A on November 22, 2024 and sell it today you would earn a total of  439.00  from holding Accor S A or generate 10.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.39%
ValuesDaily Returns

DBT SA  vs.  Accor S A

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15ALDBT AC
       Timeline  
DBT SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days DBT SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.340.360.380.40.420.440.460.480.5
Accor S A 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Accor S A are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Accor S may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb42434445464748495051

DBT SA and Accor S Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.19-3.89-2.58-1.280.01.212.413.624.83 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15ALDBT AC
       Returns  

Pair Trading with DBT SA and Accor S

The main advantage of trading using opposite DBT SA and Accor S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBT SA position performs unexpectedly, Accor S 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 Accor S will offset losses from the drop in Accor S's long position.
The idea behind DBT SA and Accor S A 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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