Correlation Between Admiral Group and Acacia Pharma
Can any of the company-specific risk be diversified away by investing in both Admiral Group and Acacia Pharma 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 Admiral Group and Acacia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Admiral Group PLC and Acacia Pharma Group, you can compare the effects of market volatilities on Admiral Group and Acacia Pharma 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 Admiral Group with a short position of Acacia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Admiral Group and Acacia Pharma.
Diversification Opportunities for Admiral Group and Acacia Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Admiral and Acacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Admiral Group PLC and Acacia Pharma Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acacia Pharma Group and Admiral 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 Admiral Group PLC are associated (or correlated) with Acacia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acacia Pharma Group has no effect on the direction of Admiral Group i.e., Admiral Group and Acacia Pharma go up and down completely randomly.
Pair Corralation between Admiral Group and Acacia Pharma
If you would invest 2,307 in Admiral Group PLC on January 24, 2024 and sell it today you would earn a total of 1,158 from holding Admiral Group PLC or generate 50.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Admiral Group PLC vs. Acacia Pharma Group
Performance |
| Timeline |
| Admiral Group PLC |
| Acacia Pharma Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Admiral Group and Acacia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Admiral Group and Acacia Pharma
The main advantage of trading using opposite Admiral Group and Acacia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Admiral Group position performs unexpectedly, Acacia Pharma 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 Acacia Pharma will offset losses from the drop in Acacia Pharma's long position.| Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services |
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Check out your portfolio center.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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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