Correlation Between Argonaut and Accel International

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

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

Diversification Opportunities for Argonaut and Accel International

0.0

Correlation Coefficient

Argonaut  Accel International

Pay attention - limited upside

The 3 months correlation between Argonaut and Accel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argonaut Group and Accel International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel International Corp and Argonaut 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 Argonaut Group are associated (or correlated) with Accel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accel International Corp has no effect on the direction of Argonaut i.e., Argonaut and Accel International go up and down completely randomly.

Pair Corralation between Argonaut and Accel International

If you would invest (100.00) in Accel International Corp on January 19, 2024 and sell it today you would earn a total of  100.00  from holding Accel International Corp 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

Argonaut Group  vs.  Accel International Corp

Argonaut Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Argonaut Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Argonaut is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Accel International Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accel International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Accel International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Argonaut and Accel International

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

The idea behind Argonaut Group and Accel International Corp 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.

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 Stocks Directory module to find actively traded stocks across global markets.