Correlation Between Accent Resources and Service Properties

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

By analyzing existing cross correlation between Accent Resources NL and Service Properties Trust, you can compare the effects of market volatilities on Accent Resources and Service Properties 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 Accent Resources with a short position of Service Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accent Resources and Service Properties.

Diversification Opportunities for Accent Resources and Service Properties

-0.48

Correlation Coefficient

Accent Resources  Service Properties

Very good diversification

The 3 months correlation between Accent and Service is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Accent Resources NL and Service Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Properties Trust and Accent Resources 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 Accent Resources NL are associated (or correlated) with Service Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Properties Trust has no effect on the direction of Accent Resources i.e., Accent Resources and Service Properties go up and down completely randomly.

Pair Corralation between Accent Resources and Service Properties

Assuming the 90 days horizon Accent Resources NL is expected to under-perform the Service Properties. In addition to that, Accent Resources is 3.63 times more volatile than Service Properties Trust. It trades about -0.15 of its total potential returns per unit of risk. Service Properties Trust is currently generating about 0.19 per unit of volatility. If you would invest  158.00  in Service Properties Trust on April 22, 2025 and sell it today you would earn a total of  66.00  from holding Service Properties Trust or generate 41.77% return on investment over 90 days.

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

Accent Resources NL  vs.  Service Properties Trust

Accent Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accent Resources NL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Service Properties Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Service Properties Trust are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Service Properties reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accent Resources and Service Properties

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

The idea behind Accent Resources NL and Service Properties Trust 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.