Correlation Between Premier Foods and Accesso Technology

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

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

Diversification Opportunities for Premier Foods and Accesso Technology

0.78

Correlation Coefficient

Premier Foods  Accesso Technology

Poor diversification

The 3 months correlation between Premier and Accesso is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Premier Foods PLC and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and Premier Foods 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 Premier Foods PLC are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Premier Foods i.e., Premier Foods and Accesso Technology go up and down completely randomly.

Pair Corralation between Premier Foods and Accesso Technology

Assuming the 90 days trading horizon Premier Foods is expected to generate 1.96 times less return on investment than Accesso Technology. But when comparing it to its historical volatility, Premier Foods PLC is 1.25 times less risky than Accesso Technology. It trades about 0.13 of its potential returns per unit of risk. Accesso Technology Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  40,700  in Accesso Technology Group on April 9, 2025 and sell it today you would earn a total of  8,500  from holding Accesso Technology Group or generate 20.88% return on investment over 90 days.

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

Premier Foods PLC  vs.  Accesso Technology Group

Premier Foods PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Premier Foods PLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Premier Foods may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Accesso Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accesso Technology Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Accesso Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Premier Foods and Accesso Technology

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

The idea behind Premier Foods PLC and Accesso Technology Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.