Correlation Between Accord Financial and Propel Holdings

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

By analyzing existing cross correlation between Accord Financial Corp and Propel Holdings, you can compare the effects of market volatilities on Accord Financial and Propel Holdings 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 Accord Financial with a short position of Propel Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accord Financial and Propel Holdings.

Diversification Opportunities for Accord Financial and Propel Holdings

0.36

Correlation Coefficient

Accord Financial  Propel Holdings

Weak diversification

The 3 months correlation between Accord and Propel is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Accord Financial Corp and Propel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Propel Holdings and Accord Financial 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 Accord Financial Corp are associated (or correlated) with Propel Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Propel Holdings has no effect on the direction of Accord Financial i.e., Accord Financial and Propel Holdings go up and down completely randomly.

Pair Corralation between Accord Financial and Propel Holdings

Assuming the 90 days trading horizon Accord Financial is expected to generate 5.81 times less return on investment than Propel Holdings. In addition to that, Accord Financial is 1.26 times more volatile than Propel Holdings. It trades about 0.03 of its total potential returns per unit of risk. Propel Holdings is currently generating about 0.21 per unit of volatility. If you would invest  2,657  in Propel Holdings on April 25, 2025 and sell it today you would earn a total of  969.00  from holding Propel Holdings or generate 36.47% return on investment over 90 days.

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

Accord Financial Corp  vs.  Propel Holdings

Accord Financial Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Accord Financial Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Accord Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Propel Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Propel Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Propel Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accord Financial and Propel Holdings

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

The idea behind Accord Financial Corp and Propel Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.