Correlation Between AOZORA BANK and ACCSYS TECHPLC

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

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

Diversification Opportunities for AOZORA BANK and ACCSYS TECHPLC

0.59

Correlation Coefficient

AOZORA BANK  ACCSYS TECHPLC

Very weak diversification

The 3 months correlation between AOZORA and ACCSYS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AOZORA BANK LTD and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and AOZORA BANK 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 AOZORA BANK LTD are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of AOZORA BANK i.e., AOZORA BANK and ACCSYS TECHPLC go up and down completely randomly.

Pair Corralation between AOZORA BANK and ACCSYS TECHPLC

Assuming the 90 days trading horizon AOZORA BANK LTD is expected to under-perform the ACCSYS TECHPLC. In addition to that, AOZORA BANK is 1.0 times more volatile than ACCSYS TECHPLC EO. It trades about -0.03 of its total potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about 0.01 per unit of volatility. If you would invest  67.00  in ACCSYS TECHPLC EO on April 15, 2025 and sell it today you would lose (2.00) from holding ACCSYS TECHPLC EO or give up 2.99% of portfolio value over 90 days.

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

AOZORA BANK LTD  vs.  ACCSYS TECHPLC EO

AOZORA BANK LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AOZORA BANK LTD are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AOZORA BANK may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ACCSYS TECHPLC EO

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ACCSYS TECHPLC EO are ranked lower than 10 (%) 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.

Pair Trading with AOZORA BANK and ACCSYS TECHPLC

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

The idea behind AOZORA BANK LTD and ACCSYS TECHPLC EO 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.