Correlation Between Acco Brands and Sorrento Therapeutics
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Sorrento Therapeutics 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 Sorrento Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Sorrento Therapeutics, you can compare the effects of market volatilities on Acco Brands and Sorrento Therapeutics 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 Sorrento Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Sorrento Therapeutics.
Diversification Opportunities for Acco Brands and Sorrento Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acco and Sorrento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Sorrento Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sorrento Therapeutics 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 Sorrento Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sorrento Therapeutics has no effect on the direction of Acco Brands i.e., Acco Brands and Sorrento Therapeutics go up and down completely randomly.
Pair Corralation between Acco Brands and Sorrento Therapeutics
If you would invest 507.00 in Acco Brands on September 14, 2024 and sell it today you would earn a total of 82.00 from holding Acco Brands or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Acco Brands vs. Sorrento Therapeutics
Performance |
| Timeline |
| Acco Brands |
| Sorrento Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acco Brands and Sorrento Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Sorrento Therapeutics
The main advantage of trading using opposite Acco Brands and Sorrento Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Sorrento Therapeutics 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 Sorrento Therapeutics will offset losses from the drop in Sorrento Therapeutics' long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Sorrento Therapeutics vs. Todos Medical | Sorrento Therapeutics vs. Amgen Inc | Sorrento Therapeutics vs. Tower One Wireless | Sorrento Therapeutics 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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