Correlation Between Acco Brands and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Aerofoam Metals 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 Acco Brands and Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Aerofoam Metals, you can compare the effects of market volatilities on Acco Brands and Aerofoam Metals 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 Acco Brands with a short position of Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Aerofoam Metals.
Diversification Opportunities for Acco Brands and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acco and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals and Acco Brands 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 Acco Brands are associated (or correlated) with Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of Acco Brands i.e., Acco Brands and Aerofoam Metals go up and down completely randomly.
Pair Corralation between Acco Brands and Aerofoam Metals
If you would invest 481.00 in Acco Brands on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Acco Brands or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Aerofoam Metals
Performance |
| Timeline |
| Acco Brands |
| Aerofoam Metals |
Acco Brands and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Aerofoam Metals
The main advantage of trading using opposite Acco Brands and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Aerofoam Metals vs. Stepstone Group | Aerofoam Metals vs. Artisan Partners Asset | Aerofoam Metals vs. Perseus Mining Limited | Aerofoam Metals vs. Lion One Metals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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