Correlation Between Automatic Data and Accesso Technology

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

By analyzing existing cross correlation between Automatic Data Processing and Accesso Technology Group, you can compare the effects of market volatilities on Automatic Data and Accesso Technology 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 Automatic Data with a short position of Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and Accesso Technology.

Diversification Opportunities for Automatic Data and Accesso Technology

0.57

Correlation Coefficient

Automatic Data  Accesso Technology

Very weak diversification

The 3 months correlation between Automatic and Accesso is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and Automatic Data 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 Automatic Data Processing are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Automatic Data i.e., Automatic Data and Accesso Technology go up and down completely randomly.

Pair Corralation between Automatic Data and Accesso Technology

Assuming the 90 days trading horizon Automatic Data Processing is expected to generate 0.4 times more return on investment than Accesso Technology. However, Automatic Data Processing is 2.51 times less risky than Accesso Technology. It trades about 0.06 of its potential returns per unit of risk. Accesso Technology Group is currently generating about 0.0 per unit of risk. If you would invest  29,110  in Automatic Data Processing on April 20, 2025 and sell it today you would earn a total of  1,150  from holding Automatic Data Processing or generate 3.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Automatic Data Processing  vs.  Accesso Technology Group

Automatic Data Processing

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Automatic Data Processing are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Automatic Data is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Accesso Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accesso Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Accesso Technology is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Automatic Data and Accesso Technology

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

The idea behind Automatic Data Processing and Accesso Technology Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.