Correlation Between Accelrys and American Bank
Can any of the company-specific risk be diversified away by investing in both Accelrys and American Bank 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 Accelrys and American Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelrys and American Bank Note, you can compare the effects of market volatilities on Accelrys and American Bank 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 Accelrys with a short position of American Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelrys and American Bank.
Diversification Opportunities for Accelrys and American Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accelrys and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accelrys and American Bank Note in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Bank Note and Accelrys 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 Accelrys are associated (or correlated) with American Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Bank Note has no effect on the direction of Accelrys i.e., Accelrys and American Bank go up and down completely randomly.
Pair Corralation between Accelrys and American Bank
If you would invest (100.00) in American Bank Note on January 24, 2024 and sell it today you would earn a total of 100.00 from holding American Bank Note or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Accelrys vs. American Bank Note
Performance |
Timeline |
Accelrys |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Bank Note |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Accelrys and American Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accelrys and American Bank
The main advantage of trading using opposite Accelrys and American Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelrys position performs unexpectedly, American Bank 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 American Bank will offset losses from the drop in American Bank's long position.Accelrys vs. POSCO Holdings | Accelrys vs. BCB Bancorp | Accelrys vs. AmTrust Financial Services | Accelrys vs. Glacier Bancorp |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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