Correlation Between Accsys Technologies and Allfunds

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

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

Diversification Opportunities for Accsys Technologies and Allfunds

0.66

Correlation Coefficient

Accsys Technologies  Allfunds

Poor diversification

The 3 months correlation between Accsys and Allfunds is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and Allfunds Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allfunds Group and Accsys Technologies 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 Accsys Technologies are associated (or correlated) with Allfunds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allfunds Group has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Allfunds go up and down completely randomly.

Pair Corralation between Accsys Technologies and Allfunds

Assuming the 90 days trading horizon Accsys Technologies is expected to under-perform the Allfunds. In addition to that, Accsys Technologies is 1.35 times more volatile than Allfunds Group. It trades about -0.07 of its total potential returns per unit of risk. Allfunds Group is currently generating about -0.05 per unit of volatility. If you would invest  531.00  in Allfunds Group on November 19, 2024 and sell it today you would lose (34.00) from holding Allfunds Group or give up 6.4% of portfolio value over 90 days.

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

Accsys Technologies  vs.  Allfunds Group

Accsys Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accsys Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Allfunds Group

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Accsys Technologies and Allfunds

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

The idea behind Accsys Technologies and Allfunds 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.