Correlation Between Livermore Investments and Accsys Technologies

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

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

Diversification Opportunities for Livermore Investments and Accsys Technologies

-0.68

Correlation Coefficient

Livermore Investments  Accsys Technologies

Excellent diversification

The 3 months correlation between Livermore and Accsys is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Livermore Investments Group and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC and Livermore 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 Livermore Investments Group are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of Livermore Investments i.e., Livermore Investments and Accsys Technologies go up and down completely randomly.

Pair Corralation between Livermore Investments and Accsys Technologies

Assuming the 90 days trading horizon Livermore Investments Group is expected to generate 2.63 times more return on investment than Accsys Technologies. However, Livermore Investments is 2.63 times more volatile than Accsys Technologies PLC. It trades about 0.16 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.13 per unit of risk. If you would invest  4,550  in Livermore Investments Group on October 8, 2024 and sell it today you would earn a total of  510.00  from holding Livermore Investments Group or generate 11.21% return on investment over 90 days.

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

Livermore Investments Group  vs.  Accsys Technologies PLC

Livermore Investments

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Livermore Investments Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Livermore Investments exhibited solid returns over the last few months and may actually be approaching a breakup point.

Accsys Technologies PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accsys Technologies PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Livermore Investments and Accsys Technologies

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

The idea behind Livermore Investments Group and Accsys Technologies PLC 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.