Correlation Between ACS Actividades and Standard

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

By analyzing existing cross correlation between ACS Actividades De and Standard Motor Products, you can compare the effects of market volatilities on ACS Actividades and Standard 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 ACS Actividades with a short position of Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and Standard.

Diversification Opportunities for ACS Actividades and Standard

0.84

Correlation Coefficient

ACS Actividades  Standard

Very poor diversification

The 3 months correlation between ACS and Standard is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades De and Standard Motor Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Motor Products and ACS Actividades 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 ACS Actividades De are associated (or correlated) with Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Motor Products has no effect on the direction of ACS Actividades i.e., ACS Actividades and Standard go up and down completely randomly.

Pair Corralation between ACS Actividades and Standard

Assuming the 90 days horizon ACS Actividades De is expected to generate 0.56 times more return on investment than Standard. However, ACS Actividades De is 1.77 times less risky than Standard. It trades about 0.26 of its potential returns per unit of risk. Standard Motor Products is currently generating about 0.14 per unit of risk. If you would invest  1,347  in ACS Actividades De on July 17, 2025 and sell it today you would earn a total of  322.00  from holding ACS Actividades De or generate 23.9% return on investment over 90 days.

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

ACS Actividades De  vs.  Standard Motor Products

ACS Actividades De

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades De are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, ACS Actividades showed solid returns over the last few months and may actually be approaching a breakup point.

Standard Motor Products

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Standard Motor Products are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating primary indicators, Standard reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACS Actividades and Standard

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

The idea behind ACS Actividades De and Standard Motor Products 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.