Correlation Between Acco Brands and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Hamilton Insurance 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 Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Hamilton Insurance Group,, you can compare the effects of market volatilities on Acco Brands and Hamilton Insurance 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 Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Hamilton Insurance.
Diversification Opportunities for Acco Brands and Hamilton Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acco and Hamilton is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Hamilton Insurance Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Insurance Group, 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 Hamilton Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Insurance Group, has no effect on the direction of Acco Brands i.e., Acco Brands and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Acco Brands and Hamilton Insurance
Given the investment horizon of 90 days Acco Brands is expected to generate 1.8 times more return on investment than Hamilton Insurance. However, Acco Brands is 1.8 times more volatile than Hamilton Insurance Group,. It trades about 0.32 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.28 per unit of risk. If you would invest 484.00 in Acco Brands on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Acco Brands or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Acco Brands |
| Hamilton Insurance Group, |
Acco Brands and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Hamilton Insurance
The main advantage of trading using opposite Acco Brands and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Hamilton Insurance 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 Hamilton Insurance will offset losses from the drop in Hamilton Insurance's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Hamilton Insurance vs. Vera Bradley | Hamilton Insurance vs. Weyco Group | Hamilton Insurance vs. Mativ Holdings | Hamilton Insurance vs. Acco Brands |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |