Correlation Between Balchem and ACCESS Newswire

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

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

Diversification Opportunities for Balchem and ACCESS Newswire

-0.73

Correlation Coefficient

Balchem  ACCESS Newswire

Pay attention - limited upside

The 3 months correlation between Balchem and ACCESS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Balchem and ACCESS Newswire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCESS Newswire and Balchem 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 Balchem are associated (or correlated) with ACCESS Newswire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCESS Newswire has no effect on the direction of Balchem i.e., Balchem and ACCESS Newswire go up and down completely randomly.

Pair Corralation between Balchem and ACCESS Newswire

Given the investment horizon of 90 days Balchem is expected to under-perform the ACCESS Newswire. But the stock apears to be less risky and, when comparing its historical volatility, Balchem is 2.66 times less risky than ACCESS Newswire. The stock trades about -0.03 of its potential returns per unit of risk. The ACCESS Newswire is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,004  in ACCESS Newswire on May 25, 2025 and sell it today you would earn a total of  86.00  from holding ACCESS Newswire or generate 8.57% return on investment over 90 days.

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

Balchem  vs.  ACCESS Newswire

Balchem

Risk-Adjusted Performance

Weakest

Over the last 90 days Balchem has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Balchem is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

ACCESS Newswire

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ACCESS Newswire are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, ACCESS Newswire may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Balchem and ACCESS Newswire

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

The idea behind Balchem and ACCESS Newswire 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.