Correlation Between Acme United and China Distance
Can any of the company-specific risk be diversified away by investing in both Acme United and China Distance 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 Acme United and China Distance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and China Distance Education, you can compare the effects of market volatilities on Acme United and China Distance 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 Acme United with a short position of China Distance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and China Distance.
Diversification Opportunities for Acme United and China Distance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acme and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and China Distance Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Distance Education and Acme United 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 Acme United are associated (or correlated) with China Distance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Distance Education has no effect on the direction of Acme United i.e., Acme United and China Distance go up and down completely randomly.
Pair Corralation between Acme United and China Distance
If you would invest 4,219 in Acme United on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Acme United or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Acme United vs. China Distance Education
Performance |
| Timeline |
| Acme United |
| China Distance Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acme United and China Distance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and China Distance
The main advantage of trading using opposite Acme United and China Distance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, China Distance 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 China Distance will offset losses from the drop in China Distance's long position.| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
| China Distance vs. JetBlue Airways Corp | China Distance vs. Skechers USA | China Distance vs. Church Dwight | China Distance vs. Acme United |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets |