Correlation Between Accesso Technology and AdvancedAdvT

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

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

Diversification Opportunities for Accesso Technology and AdvancedAdvT

-0.38

Correlation Coefficient

Accesso Technology  AdvancedAdvT

Very good diversification

The 3 months correlation between Accesso and AdvancedAdvT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Accesso Technology Group and AdvancedAdvT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvancedAdvT and Accesso Technology 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 Accesso Technology Group are associated (or correlated) with AdvancedAdvT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvancedAdvT has no effect on the direction of Accesso Technology i.e., Accesso Technology and AdvancedAdvT go up and down completely randomly.

Pair Corralation between Accesso Technology and AdvancedAdvT

Assuming the 90 days trading horizon Accesso Technology is expected to generate 58.63 times less return on investment than AdvancedAdvT. In addition to that, Accesso Technology is 1.5 times more volatile than AdvancedAdvT. It trades about 0.0 of its total potential returns per unit of risk. AdvancedAdvT is currently generating about 0.22 per unit of volatility. If you would invest  15,000  in AdvancedAdvT on April 20, 2025 and sell it today you would earn a total of  3,950  from holding AdvancedAdvT or generate 26.33% return on investment over 90 days.

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

Accesso Technology Group  vs.  AdvancedAdvT

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.

AdvancedAdvT

Risk-Adjusted Performance

Solid

Over the last 90 days AdvancedAdvT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, AdvancedAdvT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accesso Technology and AdvancedAdvT

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

The idea behind Accesso Technology Group and AdvancedAdvT 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.