Correlation Between Reinet Investments and Accsys Technologies

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

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

Diversification Opportunities for Reinet Investments and Accsys Technologies

0.66

Correlation Coefficient

Reinet Investments  Accsys Technologies

Poor diversification

The 3 months correlation between Reinet and Accsys is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Reinet Investments SCA and Accsys Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies and Reinet Investments 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 Reinet Investments SCA are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies has no effect on the direction of Reinet Investments i.e., Reinet Investments and Accsys Technologies go up and down completely randomly.

Pair Corralation between Reinet Investments and Accsys Technologies

Assuming the 90 days trading horizon Reinet Investments is expected to generate 1.14 times less return on investment than Accsys Technologies. In addition to that, Reinet Investments is 1.48 times more volatile than Accsys Technologies. It trades about 0.09 of its total potential returns per unit of risk. Accsys Technologies is currently generating about 0.15 per unit of volatility. If you would invest  54.00  in Accsys Technologies on April 13, 2025 and sell it today you would earn a total of  17.00  from holding Accsys Technologies or generate 31.48% return on investment over 90 days.

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

Reinet Investments SCA  vs.  Accsys Technologies

Reinet Investments SCA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Reinet Investments SCA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Reinet Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Reinet Investments and Accsys Technologies

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

The idea behind Reinet Investments SCA and Accsys Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.