Correlation Between Acme United and INTNED
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By analyzing existing cross correlation between Acme United and INTNED 575, you can compare the effects of market volatilities on Acme United and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and INTNED.
Diversification Opportunities for Acme United and INTNED
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acme and INTNED is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and INTNED 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 575 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 575 has no effect on the direction of Acme United i.e., Acme United and INTNED go up and down completely randomly.
Pair Corralation between Acme United and INTNED
Considering the 90-day investment horizon Acme United is expected to generate 3.76 times more return on investment than INTNED. However, Acme United is 3.76 times more volatile than INTNED 575. It trades about 0.06 of its potential returns per unit of risk. INTNED 575 is currently generating about 0.04 per unit of risk. If you would invest 2,471 in Acme United on August 31, 2024 and sell it today you would earn a total of 1,980 from holding Acme United or generate 80.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.34% |
| Values | Daily Returns |
Acme United vs. INTNED 575
Performance |
| Timeline |
| Acme United |
| INTNED 575 |
Acme United and INTNED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and INTNED
The main advantage of trading using opposite Acme United and INTNED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, INTNED 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 INTNED will offset losses from the drop in INTNED'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 |
| INTNED vs. Lifevantage | INTNED vs. Acme United | INTNED vs. Mannatech Incorporated | INTNED vs. RBC Bearings Incorporated |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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