Correlation Between Acco Brands and B Communications
Can any of the company-specific risk be diversified away by investing in both Acco Brands and B Communications 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 B Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and B Communications, you can compare the effects of market volatilities on Acco Brands and B Communications 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 B Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and B Communications.
Diversification Opportunities for Acco Brands and B Communications
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acco and BCOMF is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and B Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Communications 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 B Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Communications has no effect on the direction of Acco Brands i.e., Acco Brands and B Communications go up and down completely randomly.
Pair Corralation between Acco Brands and B Communications
If you would invest 529.00 in Acco Brands on August 28, 2024 and sell it today you would earn a total of 67.00 from holding Acco Brands or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Acco Brands vs. B Communications
Performance |
| Timeline |
| Acco Brands |
| B Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acco Brands and B Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and B Communications
The main advantage of trading using opposite Acco Brands and B Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, B Communications 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 B Communications will offset losses from the drop in B Communications' long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| B Communications vs. Constellation Brands Class | B Communications vs. The Coca Cola | B Communications vs. KVH Industries | B Communications vs. Mind Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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