Correlation Between Acco Brands and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Chiba Bank 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 Chiba Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Chiba Bank Ltd, you can compare the effects of market volatilities on Acco Brands and Chiba Bank 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 Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Chiba Bank.
Diversification Opportunities for Acco Brands and Chiba Bank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acco and Chiba is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Chiba Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank 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 Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of Acco Brands i.e., Acco Brands and Chiba Bank go up and down completely randomly.
Pair Corralation between Acco Brands and Chiba Bank
If you would invest 481.00 in Acco Brands on August 25, 2024 and sell it today you would earn a total of 101.00 from holding Acco Brands or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Chiba Bank Ltd
Performance |
| Timeline |
| Acco Brands |
| Chiba Bank |
Acco Brands and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Chiba Bank
The main advantage of trading using opposite Acco Brands and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Chiba Bank vs. Standard Bank Group | Chiba Bank vs. Bank Central Asia | Chiba Bank vs. PSB Holdings | Chiba Bank vs. United Overseas Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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