Correlation Between Amot Investments and Accel Solutions

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

By analyzing existing cross correlation between Amot Investments and Accel Solutions Group, you can compare the effects of market volatilities on Amot Investments and Accel Solutions 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 Amot Investments with a short position of Accel Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Accel Solutions.

Diversification Opportunities for Amot Investments and Accel Solutions

0.0

Correlation Coefficient

Amot Investments  Accel Solutions

Pay attention - limited upside

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

Pair Corralation between Amot Investments and Accel Solutions

If you would invest  0.00  in Accel Solutions Group on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Accel Solutions Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.92%
Values	Daily Returns

Amot Investments  vs.  Accel Solutions Group

Amot Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amot Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Accel Solutions Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accel Solutions Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Accel Solutions is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amot Investments and Accel Solutions

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

The idea behind Amot Investments and Accel Solutions Group 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.