Correlation Between Purpose Tactical and Accelerate Absolute

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

By analyzing existing cross correlation between Purpose Tactical Hedged and Accelerate Absolute Return, you can compare the effects of market volatilities on Purpose Tactical and Accelerate Absolute 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 Purpose Tactical with a short position of Accelerate Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purpose Tactical and Accelerate Absolute.

Diversification Opportunities for Purpose Tactical and Accelerate Absolute

0.57

Correlation Coefficient

Purpose Tactical  Accelerate Absolute

Very weak diversification

The 3 months correlation between Purpose and Accelerate is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Purpose Tactical Hedged and Accelerate Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Absolute and Purpose Tactical 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 Purpose Tactical Hedged are associated (or correlated) with Accelerate Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Absolute has no effect on the direction of Purpose Tactical i.e., Purpose Tactical and Accelerate Absolute go up and down completely randomly.

Pair Corralation between Purpose Tactical and Accelerate Absolute

Assuming the 90 days trading horizon Purpose Tactical Hedged is expected to generate 0.66 times more return on investment than Accelerate Absolute. However, Purpose Tactical Hedged is 1.5 times less risky than Accelerate Absolute. It trades about 0.39 of its potential returns per unit of risk. Accelerate Absolute Return is currently generating about 0.02 per unit of risk. If you would invest  3,360  in Purpose Tactical Hedged on April 21, 2025 and sell it today you would earn a total of  438.00  from holding Purpose Tactical Hedged or generate 13.04% return on investment over 90 days.

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

Purpose Tactical Hedged  vs.  Accelerate Absolute Return

Purpose Tactical Hedged

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Purpose Tactical Hedged are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Purpose Tactical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Accelerate Absolute

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Accelerate Absolute Return are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Accelerate Absolute is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Purpose Tactical and Accelerate Absolute

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

The idea behind Purpose Tactical Hedged and Accelerate Absolute Return 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.