Correlation Between ACCSYS TECHPLC and PLAYTIKA HOLDING

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

By analyzing existing cross correlation between ACCSYS TECHPLC EO and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on ACCSYS TECHPLC and PLAYTIKA HOLDING 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 ACCSYS TECHPLC with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and PLAYTIKA HOLDING.

Diversification Opportunities for ACCSYS TECHPLC and PLAYTIKA HOLDING

-0.63

Correlation Coefficient

ACCSYS TECHPLC  PLAYTIKA HOLDING

Excellent diversification

The 3 months correlation between ACCSYS and PLAYTIKA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between ACCSYS TECHPLC and PLAYTIKA HOLDING

Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to generate 1.42 times more return on investment than PLAYTIKA HOLDING. However, ACCSYS TECHPLC is 1.42 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.16 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.04 per unit of risk. If you would invest  50.00  in ACCSYS TECHPLC EO on April 23, 2025 and sell it today you would earn a total of  18.00  from holding ACCSYS TECHPLC EO or generate 36.0% return on investment over 90 days.

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

ACCSYS TECHPLC EO  vs.  PLAYTIKA HOLDING DL 01

ACCSYS TECHPLC EO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACCSYS TECHPLC EO are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ACCSYS TECHPLC reported solid returns over the last few months and may actually be approaching a breakup point.

PLAYTIKA HOLDING

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ACCSYS TECHPLC and PLAYTIKA HOLDING

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

The idea behind ACCSYS TECHPLC EO and PLAYTIKA HOLDING DL 01 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.