Correlation Between ACI Worldwide and Ameris Bancorp

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

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

Diversification Opportunities for ACI Worldwide and Ameris Bancorp

-0.62

Correlation Coefficient

ACI Worldwide  Ameris Bancorp

Excellent diversification

The 3 months correlation between ACI and Ameris is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ACI Worldwide and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris Bancorp and ACI Worldwide 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 ACI Worldwide are associated (or correlated) with Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of ACI Worldwide i.e., ACI Worldwide and Ameris Bancorp go up and down completely randomly.

Pair Corralation between ACI Worldwide and Ameris Bancorp

Given the investment horizon of 90 days ACI Worldwide is expected to under-perform the Ameris Bancorp. In addition to that, ACI Worldwide is 1.4 times more volatile than Ameris Bancorp. It trades about -0.2 of its total potential returns per unit of risk. Ameris Bancorp is currently generating about 0.1 per unit of volatility. If you would invest  5,997  in Ameris Bancorp on May 5, 2025 and sell it today you would earn a total of  594.00  from holding Ameris Bancorp or generate 9.9% return on investment over 90 days.

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

ACI Worldwide  vs.  Ameris Bancorp

ACI Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days ACI Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Ameris Bancorp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ameris Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Ameris Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ACI Worldwide and Ameris Bancorp

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

The idea behind ACI Worldwide and Ameris Bancorp 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.