Correlation Between Ashtead Technology and Accelleron Industries
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology and Accelleron Industries 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 Ashtead Technology and Accelleron Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and Accelleron Industries AG, you can compare the effects of market volatilities on Ashtead Technology and Accelleron Industries 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 Ashtead Technology with a short position of Accelleron Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and Accelleron Industries.
Diversification Opportunities for Ashtead Technology and Accelleron Industries
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashtead and Accelleron is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings and Accelleron Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelleron Industries and Ashtead Technology 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 Ashtead Technology Holdings are associated (or correlated) with Accelleron Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelleron Industries has no effect on the direction of Ashtead Technology i.e., Ashtead Technology and Accelleron Industries go up and down completely randomly.
Pair Corralation between Ashtead Technology and Accelleron Industries
Assuming the 90 days trading horizon Ashtead Technology Holdings is expected to generate 2.0 times more return on investment than Accelleron Industries. However, Ashtead Technology is 2.0 times more volatile than Accelleron Industries AG. It trades about 0.0 of its potential returns per unit of risk. Accelleron Industries AG is currently generating about -0.09 per unit of risk. If you would invest 36,100 in Ashtead Technology Holdings on September 8, 2025 and sell it today you would lose (1,000.00) from holding Ashtead Technology Holdings or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtead Technology Holdings vs. Accelleron Industries AG
Performance |
| Timeline |
| Ashtead Technology |
| Accelleron Industries |
Ashtead Technology and Accelleron Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Technology and Accelleron Industries
The main advantage of trading using opposite Ashtead Technology and Accelleron Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology position performs unexpectedly, Accelleron Industries 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 Accelleron Industries will offset losses from the drop in Accelleron Industries' long position.| Ashtead Technology vs. LPKF Laser Electronics | Ashtead Technology vs. Fevertree Drinks Plc | Ashtead Technology vs. STMicroelectronics NV | Ashtead Technology vs. Air Products Chemicals |
| Accelleron Industries vs. Alliance Data Systems | Accelleron Industries vs. Automatic Data Processing | Accelleron Industries vs. Tyson Foods Cl | Accelleron Industries vs. Universal Music Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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