Correlation Between Concurrent Technologies and Accsys Technologies

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

By analyzing existing cross correlation between Concurrent Technologies Plc and Accsys Technologies PLC, you can compare the effects of market volatilities on Concurrent Technologies and Accsys Technologies 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 Concurrent Technologies with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Accsys Technologies.

Diversification Opportunities for Concurrent Technologies and Accsys Technologies

-0.75

Correlation Coefficient

Concurrent Technologies  Accsys Technologies

Pay attention - limited upside

The 3 months correlation between Concurrent and Accsys is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC and Concurrent Technologies 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 Concurrent Technologies Plc are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Accsys Technologies go up and down completely randomly.

Pair Corralation between Concurrent Technologies and Accsys Technologies

Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.26 times more return on investment than Accsys Technologies. However, Concurrent Technologies is 1.26 times more volatile than Accsys Technologies PLC. It trades about 0.08 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.07 per unit of risk. If you would invest  11,700  in Concurrent Technologies Plc on September 21, 2024 and sell it today you would earn a total of  1,550  from holding Concurrent Technologies Plc or generate 13.25% return on investment over 90 days.

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

Concurrent Technologies Plc  vs.  Accsys Technologies PLC

Concurrent Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Concurrent Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Accsys Technologies PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accsys Technologies PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Concurrent Technologies and Accsys Technologies

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

The idea behind Concurrent Technologies Plc and Accsys Technologies PLC 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.