Correlation Between Acco Brands and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Mesa Air 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 Mesa Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Mesa Air Group, you can compare the effects of market volatilities on Acco Brands and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Mesa Air.
Diversification Opportunities for Acco Brands and Mesa Air
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acco and Mesa is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Acco Brands i.e., Acco Brands and Mesa Air go up and down completely randomly.
Pair Corralation between Acco Brands and Mesa Air
Given the investment horizon of 90 days Acco Brands is expected to generate 3.51 times less return on investment than Mesa Air. But when comparing it to its historical volatility, Acco Brands is 1.88 times less risky than Mesa Air. It trades about 0.14 of its potential returns per unit of risk. Mesa Air Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Mesa Air Group on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Mesa Air Group or generate 22.73% 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. Mesa Air Group
Performance |
| Timeline |
| Acco Brands |
| Mesa Air Group |
Acco Brands and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Mesa Air
The main advantage of trading using opposite Acco Brands and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |