Correlation Between Immo Mcc and Accentis

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

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

Diversification Opportunities for Immo Mcc and Accentis

0.63

Correlation Coefficient

Immo Mcc  Accentis

Poor diversification

The 3 months correlation between Immo and Accentis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Immo Mcc NV and Accentis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accentis and Immo Mcc 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 Immo Mcc NV are associated (or correlated) with Accentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accentis has no effect on the direction of Immo Mcc i.e., Immo Mcc and Accentis go up and down completely randomly.

Pair Corralation between Immo Mcc and Accentis

Assuming the 90 days trading horizon Immo Mcc is expected to generate 1.9 times less return on investment than Accentis. But when comparing it to its historical volatility, Immo Mcc NV is 3.57 times less risky than Accentis. It trades about 0.11 of its potential returns per unit of risk. Accentis is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3.00  in Accentis on December 22, 2024 and sell it today you would earn a total of  0.25  from holding Accentis or generate 8.33% return on investment over 90 days.

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

Immo Mcc NV  vs.  Accentis

Immo Mcc NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Immo Mcc NV are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Immo Mcc is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Accentis

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Accentis are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Accentis may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Immo Mcc and Accentis

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

The idea behind Immo Mcc NV and Accentis 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.