Correlation Between A2 Milk and ACS Actividades

Can any of the company-specific risk be diversified away by investing in both A2 Milk and ACS Actividades 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 A2 Milk and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The a2 Milk and ACS Actividades De, you can compare the effects of market volatilities on A2 Milk and ACS Actividades 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 A2 Milk with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2 Milk and ACS Actividades.

Diversification Opportunities for A2 Milk and ACS Actividades

-0.39

Correlation Coefficient

A2 Milk  ACS Actividades

Very good diversification

The 3 months correlation between ACOPF and ACS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding The a2 Milk and ACS Actividades De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades De and A2 Milk 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 The a2 Milk are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades De has no effect on the direction of A2 Milk i.e., A2 Milk and ACS Actividades go up and down completely randomly.

Pair Corralation between A2 Milk and ACS Actividades

Assuming the 90 days horizon The a2 Milk is expected to under-perform the ACS Actividades. In addition to that, A2 Milk is 1.86 times more volatile than ACS Actividades De. It trades about -0.05 of its total potential returns per unit of risk. ACS Actividades De is currently generating about 0.18 per unit of volatility. If you would invest  1,212  in ACS Actividades De on May 11, 2025 and sell it today you would earn a total of  234.00  from holding ACS Actividades De or generate 19.31% return on investment over 90 days.

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

The a2 Milk  vs.  ACS Actividades De

a2 Milk

Risk-Adjusted Performance

Weakest

Over the last 90 days The a2 Milk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ACS Actividades De

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades De are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, ACS Actividades showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with A2 Milk and ACS Actividades

The main advantage of trading using opposite A2 Milk and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2 Milk position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.

The idea behind The a2 Milk and ACS Actividades De 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.