Correlation Between Acme United and 345397ZW6
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By analyzing existing cross correlation between Acme United and Ford Motor Credit, you can compare the effects of market volatilities on Acme United and 345397ZW6 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 345397ZW6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and 345397ZW6.
Diversification Opportunities for Acme United and 345397ZW6
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acme and 345397ZW6 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Ford Motor Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor Credit 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 345397ZW6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor Credit has no effect on the direction of Acme United i.e., Acme United and 345397ZW6 go up and down completely randomly.
Pair Corralation between Acme United and 345397ZW6
Considering the 90-day investment horizon Acme United is expected to generate 2.75 times more return on investment than 345397ZW6. However, Acme United is 2.75 times more volatile than Ford Motor Credit. It trades about 0.03 of its potential returns per unit of risk. Ford Motor Credit is currently generating about -0.12 per unit of risk. If you would invest 4,317 in Acme United on September 2, 2024 and sell it today you would earn a total of 134.00 from holding Acme United or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.69% |
| Values | Daily Returns |
Acme United vs. Ford Motor Credit
Performance |
| Timeline |
| Acme United |
| Ford Motor Credit |
Acme United and 345397ZW6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and 345397ZW6
The main advantage of trading using opposite Acme United and 345397ZW6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, 345397ZW6 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 345397ZW6 will offset losses from the drop in 345397ZW6'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 |
| 345397ZW6 vs. Willamette Valley Vineyards | 345397ZW6 vs. Celsius Holdings | 345397ZW6 vs. Oatly Group AB | 345397ZW6 vs. SNDL Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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