Correlation Between Acco Brands and SEP Acquisition
Can any of the company-specific risk be diversified away by investing in both Acco Brands and SEP Acquisition 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 SEP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and SEP Acquisition Corp, you can compare the effects of market volatilities on Acco Brands and SEP Acquisition 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 SEP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and SEP Acquisition.
Diversification Opportunities for Acco Brands and SEP Acquisition
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acco and SEP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and SEP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEP Acquisition Corp 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 SEP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEP Acquisition Corp has no effect on the direction of Acco Brands i.e., Acco Brands and SEP Acquisition go up and down completely randomly.
Pair Corralation between Acco Brands and SEP Acquisition
If you would invest 1,026 in SEP Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding SEP Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Acco Brands vs. SEP Acquisition Corp
Performance |
| Timeline |
| Acco Brands |
| SEP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acco Brands and SEP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and SEP Acquisition
The main advantage of trading using opposite Acco Brands and SEP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, SEP Acquisition 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 SEP Acquisition will offset losses from the drop in SEP Acquisition's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| SEP Acquisition vs. AMCON Distributing | SEP Acquisition vs. Acco Brands | SEP Acquisition vs. Skillful Craftsman Education | SEP Acquisition vs. John Wiley Sons |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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