Correlation Between Acco Brands and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Evolution Gaming 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 Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Evolution Gaming Group, you can compare the effects of market volatilities on Acco Brands and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Evolution Gaming.
Diversification Opportunities for Acco Brands and Evolution Gaming
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acco and Evolution is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Acco Brands i.e., Acco Brands and Evolution Gaming go up and down completely randomly.
Pair Corralation between Acco Brands and Evolution Gaming
Given the investment horizon of 90 days Acco Brands is expected to generate 1.1 times more return on investment than Evolution Gaming. However, Acco Brands is 1.1 times more volatile than Evolution Gaming Group. It trades about 0.03 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.03 per unit of risk. If you would invest 516.00 in Acco Brands on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Acco Brands or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Evolution Gaming Group
Performance |
| Timeline |
| Acco Brands |
| Evolution Gaming |
Acco Brands and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Evolution Gaming
The main advantage of trading using opposite Acco Brands and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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