Correlation Between Inspecs Group and Accesso Technology

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

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

Diversification Opportunities for Inspecs Group and Accesso Technology

0.47

Correlation Coefficient

Inspecs Group  Accesso Technology

Very weak diversification

The 3 months correlation between Inspecs and Accesso is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Inspecs Group 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 Inspecs Group 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 Inspecs Group 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 Inspecs Group i.e., Inspecs Group and Accesso Technology go up and down completely randomly.

Pair Corralation between Inspecs Group and Accesso Technology

Assuming the 90 days trading horizon Inspecs Group plc is expected to generate 1.17 times more return on investment than Accesso Technology. However, Inspecs Group is 1.17 times more volatile than Accesso Technology Group. It trades about 0.05 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.02 per unit of risk. If you would invest  4,000  in Inspecs Group plc on April 24, 2025 and sell it today you would earn a total of  300.00  from holding Inspecs Group plc or generate 7.5% return on investment over 90 days.

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

Inspecs Group plc  vs.  Accesso Technology Group

Inspecs Group plc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inspecs Group plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Inspecs Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Accesso Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accesso Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Accesso Technology is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Inspecs Group and Accesso Technology

The main advantage of trading using opposite Inspecs Group and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspecs Group 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 Inspecs Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.