Correlation Between Acco Brands and LOEWS
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By analyzing existing cross correlation between Acco Brands and LOEWS P 6, you can compare the effects of market volatilities on Acco Brands and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and LOEWS.
Diversification Opportunities for Acco Brands and LOEWS
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acco and LOEWS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and LOEWS P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 6 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 6 has no effect on the direction of Acco Brands i.e., Acco Brands and LOEWS go up and down completely randomly.
Pair Corralation between Acco Brands and LOEWS
Given the investment horizon of 90 days Acco Brands is expected to generate 3.59 times more return on investment than LOEWS. However, Acco Brands is 3.59 times more volatile than LOEWS P 6. It trades about 0.07 of its potential returns per unit of risk. LOEWS P 6 is currently generating about 0.04 per unit of risk. If you would invest 490.00 in Acco Brands on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Acco Brands or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
Acco Brands vs. LOEWS P 6
Performance |
| Timeline |
| Acco Brands |
| LOEWS P 6 |
Acco Brands and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and LOEWS
The main advantage of trading using opposite Acco Brands and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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