Correlation Between Argo Group and Accelleron Industries

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

By analyzing existing cross correlation between Argo Group Limited and Accelleron Industries AG, you can compare the effects of market volatilities on Argo Group and Accelleron Industries 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 Argo Group with a short position of Accelleron Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Accelleron Industries.

Diversification Opportunities for Argo Group and Accelleron Industries

0.02

Correlation Coefficient

Argo Group  Accelleron Industries

Significant diversification

The 3 months correlation between Argo and Accelleron is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and Accelleron Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelleron Industries and Argo Group 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 Argo Group Limited are associated (or correlated) with Accelleron Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelleron Industries has no effect on the direction of Argo Group i.e., Argo Group and Accelleron Industries go up and down completely randomly.

Pair Corralation between Argo Group and Accelleron Industries

Assuming the 90 days trading horizon Argo Group Limited is expected to under-perform the Accelleron Industries. In addition to that, Argo Group is 2.51 times more volatile than Accelleron Industries AG. It trades about -0.05 of its total potential returns per unit of risk. Accelleron Industries AG is currently generating about 0.12 per unit of volatility. If you would invest  2,187  in Accelleron Industries AG on October 6, 2024 and sell it today you would earn a total of  2,495  from holding Accelleron Industries AG or generate 114.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.9%
Values	Daily Returns

Argo Group Limited  vs.  Accelleron Industries AG

Argo Group Limited

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Group Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Argo Group is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Accelleron Industries

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Accelleron Industries AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Accelleron Industries may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Argo Group and Accelleron Industries

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

The idea behind Argo Group Limited and Accelleron Industries AG 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.