Correlation Between Accelleron Industries and Xylem
Can any of the company-specific risk be diversified away by investing in both Accelleron Industries and Xylem 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 Accelleron Industries and Xylem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelleron Industries AG and Xylem Inc, you can compare the effects of market volatilities on Accelleron Industries and Xylem 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 Accelleron Industries with a short position of Xylem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelleron Industries and Xylem.
Diversification Opportunities for Accelleron Industries and Xylem
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accelleron and Xylem is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Accelleron Industries AG and Xylem Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xylem Inc and Accelleron Industries 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 Accelleron Industries AG are associated (or correlated) with Xylem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xylem Inc has no effect on the direction of Accelleron Industries i.e., Accelleron Industries and Xylem go up and down completely randomly.
Pair Corralation between Accelleron Industries and Xylem
Assuming the 90 days trading horizon Accelleron Industries AG is expected to under-perform the Xylem. In addition to that, Accelleron Industries is 1.34 times more volatile than Xylem Inc. It trades about -0.1 of its total potential returns per unit of risk. Xylem Inc is currently generating about 0.0 per unit of volatility. If you would invest 13,964 in Xylem Inc on September 7, 2025 and sell it today you would lose (63.00) from holding Xylem Inc or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Accelleron Industries AG vs. Xylem Inc
Performance |
| Timeline |
| Accelleron Industries |
| Xylem Inc |
Accelleron Industries and Xylem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelleron Industries and Xylem
The main advantage of trading using opposite Accelleron Industries and Xylem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelleron Industries position performs unexpectedly, Xylem 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 Xylem will offset losses from the drop in Xylem's long position.| Accelleron Industries vs. SBM Offshore NV | Accelleron Industries vs. BW Offshore | Accelleron Industries vs. Uber Technologies | Accelleron Industries vs. Baker Steel Resources |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |