Correlation Between Accsys Technologies and Basic Fit
Can any of the company-specific risk be diversified away by investing in both Accsys Technologies and Basic Fit 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 Basic Fit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accsys Technologies and Basic Fit NV, you can compare the effects of market volatilities on Accsys Technologies and Basic Fit 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 Basic Fit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accsys Technologies and Basic Fit.
Diversification Opportunities for Accsys Technologies and Basic Fit
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Accsys and Basic is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and Basic Fit NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Fit NV 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 Basic Fit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Fit NV has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and Basic Fit go up and down completely randomly.
Pair Corralation between Accsys Technologies and Basic Fit
Assuming the 90 days trading horizon Accsys Technologies is expected to under-perform the Basic Fit. In addition to that, Accsys Technologies is 1.16 times more volatile than Basic Fit NV. It trades about -0.19 of its total potential returns per unit of risk. Basic Fit NV is currently generating about -0.06 per unit of volatility. If you would invest 2,160 in Basic Fit NV on February 6, 2024 and sell it today you would lose (48.00) from holding Basic Fit NV or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accsys Technologies vs. Basic Fit NV
Performance |
| Timeline |
| Accsys Technologies |
| Basic Fit NV |
Accsys Technologies and Basic Fit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accsys Technologies and Basic Fit
The main advantage of trading using opposite Accsys Technologies and Basic Fit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accsys Technologies position performs unexpectedly, Basic Fit 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 Basic Fit will offset losses from the drop in Basic Fit's long position.| Accsys Technologies vs. Avantium Holding BV | Accsys Technologies vs. AMG Advanced Metallurgical | Accsys Technologies vs. Pharming Group NV | Accsys Technologies vs. CM NV |
| Basic Fit vs. Alfen Beheer BV | Basic Fit vs. Kinepolis Group NV | Basic Fit vs. Galapagos NV | Basic Fit vs. PostNL NV |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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