Correlation Between Rising Rates and Access Flex

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

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

Diversification Opportunities for Rising Rates and Access Flex

-0.65

Correlation Coefficient

Rising Rates  Access Flex

Excellent diversification

The 3 months correlation between Rising and Access is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rising Rates Opportunity and Access Flex High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex High and Rising Rates 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 Rising Rates Opportunity are associated (or correlated) with Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex High has no effect on the direction of Rising Rates i.e., Rising Rates and Access Flex go up and down completely randomly.

Pair Corralation between Rising Rates and Access Flex

Assuming the 90 days horizon Rising Rates Opportunity is expected to under-perform the Access Flex. In addition to that, Rising Rates is 3.04 times more volatile than Access Flex High. It trades about -0.07 of its total potential returns per unit of risk. Access Flex High is currently generating about 0.07 per unit of volatility. If you would invest  3,045  in Access Flex High on August 21, 2025 and sell it today you would earn a total of  30.00  from holding Access Flex High or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Rising Rates Opportunity  vs.  Access Flex High

Rising Rates Opportunity

Risk-Adjusted Performance

Weakest

Over the last 90 days Rising Rates Opportunity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Rising Rates is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Access Flex High

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Access Flex High are ranked lower than 5 (%) 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.

Pair Trading with Rising Rates and Access Flex

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

The idea behind Rising Rates Opportunity and Access Flex High 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.