Correlation Between Acco Brands and FEDEX
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By analyzing existing cross correlation between Acco Brands and FEDEX P 405, you can compare the effects of market volatilities on Acco Brands and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and FEDEX.
Diversification Opportunities for Acco Brands and FEDEX
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acco and FEDEX is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and FEDEX P 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 405 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 405 has no effect on the direction of Acco Brands i.e., Acco Brands and FEDEX go up and down completely randomly.
Pair Corralation between Acco Brands and FEDEX
Given the investment horizon of 90 days Acco Brands is expected to generate 2.27 times more return on investment than FEDEX. However, Acco Brands is 2.27 times more volatile than FEDEX P 405. It trades about 0.22 of its potential returns per unit of risk. FEDEX P 405 is currently generating about 0.23 per unit of risk. If you would invest 549.00 in Acco Brands on September 4, 2024 and sell it today you would earn a total of 64.00 from holding Acco Brands or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Acco Brands vs. FEDEX P 405
Performance |
| Timeline |
| Acco Brands |
| FEDEX P 405 |
Acco Brands and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and FEDEX
The main advantage of trading using opposite Acco Brands and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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