Correlation Between Access Flex and Access Capital

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

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

Diversification Opportunities for Access Flex and Access Capital

0.92

Correlation Coefficient

Access Flex  Access Capital

Almost no diversification

The 3 months correlation between Access and Access is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Access Flex High and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Access Flex 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 Access Flex High are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Access Flex i.e., Access Flex and Access Capital go up and down completely randomly.

Pair Corralation between Access Flex and Access Capital

Assuming the 90 days horizon Access Flex High is expected to generate 0.62 times more return on investment than Access Capital. However, Access Flex High is 1.61 times less risky than Access Capital. It trades about 0.18 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.1 per unit of risk. If you would invest  3,006  in Access Flex High on May 19, 2025 and sell it today you would earn a total of  71.00  from holding Access Flex High or generate 2.36% return on investment over 90 days.

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

Access Flex High  vs.  Access Capital Munity

Access Flex High

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Access Flex High are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Access Flex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Access Capital Munity

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Access Capital Munity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Access Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Access Flex and Access Capital

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

The idea behind Access Flex High and Access Capital Munity 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.