Correlation Between Access Flex and MAAX

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Can any of the company-specific risk be diversified away by investing in both Access Flex and MAAX 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 Access Flex and MAAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Flex High and MAAX, you can compare the effects of market volatilities on Access Flex and MAAX 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 Access Flex with a short position of MAAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Flex and MAAX.

Diversification Opportunities for Access Flex and MAAX

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Access Flex and MAAX

If you would invest (100.00) in Access Flex High on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Access Flex High or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ACCESS FLEX HIGH  vs.  MAAX

 Performance 
       Timeline  
Access Flex High 

Risk-Adjusted Performance

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Low
 
High
OK
Over the last 90 days Access Flex High has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Access Flex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
MAAX 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days MAAX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, MAAX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Access Flex and MAAX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Access Flex and MAAX

The main advantage of trading using opposite Access Flex and MAAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Flex position performs unexpectedly, MAAX 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 MAAX will offset losses from the drop in MAAX's long position.
The idea behind Access Flex High and MAAX 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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