Correlation Between Exor NV and Accsys Technologies

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

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

Diversification Opportunities for Exor NV and Accsys Technologies

-0.53

Correlation Coefficient

Exor NV  Accsys Technologies

Excellent diversification

The 3 months correlation between Exor and Accsys is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and Accsys Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies and Exor NV 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 Exor NV 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 has no effect on the direction of Exor NV i.e., Exor NV and Accsys Technologies go up and down completely randomly.

Pair Corralation between Exor NV and Accsys Technologies

Assuming the 90 days trading horizon Exor NV is expected to generate 0.48 times more return on investment than Accsys Technologies. However, Exor NV is 2.07 times less risky than Accsys Technologies. It trades about -0.03 of its potential returns per unit of risk. Accsys Technologies is currently generating about -0.21 per unit of risk. If you would invest  10,160  in Exor NV on January 29, 2024 and sell it today you would lose (50.00) from holding Exor NV or give up 0.49% of portfolio value over 90 days.

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

Exor NV  vs.  Accsys Technologies

Exor NV

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Exor NV are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Exor NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Accsys Technologies

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Exor NV and Accsys Technologies

The main advantage of trading using opposite Exor NV and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exor NV 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 Exor NV and Accsys Technologies 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.