Correlation Between ACS Actividades and Koss

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

By analyzing existing cross correlation between ACS Actividades De and Koss Corporation, you can compare the effects of market volatilities on ACS Actividades and Koss 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 ACS Actividades with a short position of Koss. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and Koss.

Diversification Opportunities for ACS Actividades and Koss

0.18

Correlation Coefficient

ACS Actividades  Koss

Average diversification

The 3 months correlation between ACS and Koss is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades De and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss and ACS Actividades 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 ACS Actividades De are associated (or correlated) with Koss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koss has no effect on the direction of ACS Actividades i.e., ACS Actividades and Koss go up and down completely randomly.

Pair Corralation between ACS Actividades and Koss

Assuming the 90 days horizon ACS Actividades De is expected to generate 0.68 times more return on investment than Koss. However, ACS Actividades De is 1.47 times less risky than Koss. It trades about 0.29 of its potential returns per unit of risk. Koss Corporation is currently generating about 0.11 per unit of risk. If you would invest  892.00  in ACS Actividades De on September 13, 2024 and sell it today you would earn a total of  106.00  from holding ACS Actividades De or generate 11.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

ACS Actividades De  vs.  Koss Corp.

ACS Actividades De

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades De are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, ACS Actividades may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Koss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Koss Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Koss is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ACS Actividades and Koss

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

The idea behind ACS Actividades De and Koss Corporation 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.