Correlation Between Acceleware and Intouch Insight

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

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

Diversification Opportunities for Acceleware and Intouch Insight

-0.83

Correlation Coefficient

Acceleware  Intouch Insight

Pay attention - limited upside

The 3 months correlation between Acceleware and Intouch is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Acceleware and Intouch Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Insight and Acceleware 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 Acceleware are associated (or correlated) with Intouch Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Insight has no effect on the direction of Acceleware i.e., Acceleware and Intouch Insight go up and down completely randomly.

Pair Corralation between Acceleware and Intouch Insight

Assuming the 90 days horizon Acceleware is expected to generate 0.38 times more return on investment than Intouch Insight. However, Acceleware is 2.67 times less risky than Intouch Insight. It trades about 0.18 of its potential returns per unit of risk. Intouch Insight is currently generating about -0.03 per unit of risk. If you would invest  7.50  in Acceleware on May 6, 2025 and sell it today you would earn a total of  1.19  from holding Acceleware or generate 15.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Acceleware  vs.  Intouch Insight

Acceleware

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acceleware are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Acceleware reported solid returns over the last few months and may actually be approaching a breakup point.

Intouch Insight

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Insight has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Intouch Insight is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Acceleware and Intouch Insight

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

The idea behind Acceleware and Intouch Insight 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.