Correlation Between Acme United and Henderson Investment
Can any of the company-specific risk be diversified away by investing in both Acme United and Henderson Investment 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 Henderson Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and Henderson Investment Ltd, you can compare the effects of market volatilities on Acme United and Henderson Investment 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 Henderson Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Henderson Investment.
Diversification Opportunities for Acme United and Henderson Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acme and Henderson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Henderson Investment Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Investment 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 Henderson Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Investment has no effect on the direction of Acme United i.e., Acme United and Henderson Investment go up and down completely randomly.
Pair Corralation between Acme United and Henderson Investment
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 | 100.0% |
| Values | Daily Returns |
Acme United vs. Henderson Investment Ltd
Performance |
| Timeline |
| Acme United |
| Henderson Investment |
Acme United and Henderson Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and Henderson Investment
The main advantage of trading using opposite Acme United and Henderson Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, Henderson Investment 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 Henderson Investment will offset losses from the drop in Henderson Investment'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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