Correlation Between Acco Brands and Bausch
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By analyzing existing cross correlation between Acco Brands and Bausch Health Companies, you can compare the effects of market volatilities on Acco Brands and Bausch 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 Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Bausch.
Diversification Opportunities for Acco Brands and Bausch
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acco and Bausch is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies 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 Bausch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Acco Brands i.e., Acco Brands and Bausch go up and down completely randomly.
Pair Corralation between Acco Brands and Bausch
Given the investment horizon of 90 days Acco Brands is expected to generate 0.88 times more return on investment than Bausch. However, Acco Brands is 1.13 times less risky than Bausch. It trades about -0.01 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.07 per unit of risk. If you would invest 624.00 in Acco Brands on September 12, 2024 and sell it today you would lose (5.00) from holding Acco Brands or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Acco Brands vs. Bausch Health Companies
Performance |
| Timeline |
| Acco Brands |
| Bausch Health Companies |
Acco Brands and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Bausch
The main advantage of trading using opposite Acco Brands and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Bausch 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 Bausch will offset losses from the drop in Bausch's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Bausch vs. Acco Brands | Bausch vs. John Wiley Sons | Bausch vs. Universal Technical Institute | Bausch vs. Delek Logistics Partners |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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