Correlation Between Tradegate and ACCSYS TECHPLC

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

By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on Tradegate and ACCSYS TECHPLC 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 Tradegate with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and ACCSYS TECHPLC.

Diversification Opportunities for Tradegate and ACCSYS TECHPLC

-0.28

Correlation Coefficient

Tradegate  ACCSYS TECHPLC

Very good diversification

The 3 months correlation between Tradegate and ACCSYS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of Tradegate i.e., Tradegate and ACCSYS TECHPLC go up and down completely randomly.

Pair Corralation between Tradegate and ACCSYS TECHPLC

Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to under-perform the ACCSYS TECHPLC. But the stock apears to be less risky and, when comparing its historical volatility, Tradegate AG Wertpapierhandelsbank is 3.13 times less risky than ACCSYS TECHPLC. The stock trades about -0.01 of its potential returns per unit of risk. The ACCSYS TECHPLC EO is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  50.00  in ACCSYS TECHPLC EO on April 20, 2025 and sell it today you would earn a total of  18.00  from holding ACCSYS TECHPLC EO or generate 36.0% return on investment over 90 days.

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

Tradegate AG Wertpapierhandels  vs.  ACCSYS TECHPLC EO

Tradegate AG Wertpap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tradegate AG Wertpapierhandelsbank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tradegate is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ACCSYS TECHPLC EO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACCSYS TECHPLC EO are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ACCSYS TECHPLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tradegate and ACCSYS TECHPLC

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

The idea behind Tradegate AG Wertpapierhandelsbank and ACCSYS TECHPLC EO 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.