Correlation Between Accntuate and HomeChoice Investments

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

By analyzing existing cross correlation between Accntuate Limited and HomeChoice Investments, you can compare the effects of market volatilities on Accntuate and HomeChoice Investments 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 Accntuate with a short position of HomeChoice Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accntuate and HomeChoice Investments.

Diversification Opportunities for Accntuate and HomeChoice Investments

0.0

Correlation Coefficient

Accntuate  HomeChoice Investments

Pay attention - limited upside

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

Pair Corralation between Accntuate and HomeChoice Investments

If you would invest  220,000  in HomeChoice Investments on January 29, 2024 and sell it today you would earn a total of  30,000  from holding HomeChoice Investments or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Accntuate Limited  vs.  HomeChoice Investments

Accntuate Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accntuate Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Accntuate is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

HomeChoice Investments

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HomeChoice Investments are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking indicators, HomeChoice Investments exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accntuate and HomeChoice Investments

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

The idea behind Accntuate Limited and HomeChoice Investments 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.