Correlation Between ACCSYS TECHPLC and BJs Wholesale

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

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

Diversification Opportunities for ACCSYS TECHPLC and BJs Wholesale

-0.81

Correlation Coefficient

ACCSYS TECHPLC  BJs Wholesale

Pay attention - limited upside

The 3 months correlation between ACCSYS and BJs is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and BJs Wholesale go up and down completely randomly.

Pair Corralation between ACCSYS TECHPLC and BJs Wholesale

Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to under-perform the BJs Wholesale. In addition to that, ACCSYS TECHPLC is 1.36 times more volatile than BJs Wholesale Club. It trades about -0.04 of its total potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.23 per unit of volatility. If you would invest  7,100  in BJs Wholesale Club on September 3, 2024 and sell it today you would earn a total of  1,950  from holding BJs Wholesale Club or generate 27.46% return on investment over 90 days.

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

ACCSYS TECHPLC EO  vs.  BJs Wholesale Club

ACCSYS TECHPLC EO

Risk-Adjusted Performance

0 of 100

Very Weak

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

BJs Wholesale Club

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BJs Wholesale Club are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BJs Wholesale reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACCSYS TECHPLC and BJs Wholesale

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

The idea behind ACCSYS TECHPLC EO and BJs Wholesale Club 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.