Correlation Between Accsys Technologies and RENEWI

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

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

Diversification Opportunities for Accsys Technologies and RENEWI

-0.49

Correlation Coefficient

Accsys Technologies  RENEWI

Very good diversification

The 3 months correlation between Accsys and RENEWI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Accsys Technologies and RENEWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENEWI and Accsys Technologies 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 Accsys Technologies are associated (or correlated) with RENEWI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENEWI has no effect on the direction of Accsys Technologies i.e., Accsys Technologies and RENEWI go up and down completely randomly.

Pair Corralation between Accsys Technologies and RENEWI

Assuming the 90 days trading horizon Accsys Technologies is expected to generate 29.56 times less return on investment than RENEWI. But when comparing it to its historical volatility, Accsys Technologies is 39.44 times less risky than RENEWI. It trades about 0.15 of its potential returns per unit of risk. RENEWI is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  25.00  in RENEWI on April 20, 2025 and sell it today you would lose (5.00) from holding RENEWI or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Accsys Technologies  vs.  RENEWI

Accsys Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accsys Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Accsys Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

RENEWI

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RENEWI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, RENEWI unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accsys Technologies and RENEWI

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

The idea behind Accsys Technologies and RENEWI 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.