Correlation Between Atkore International and Acuity Brands
Can any of the company-specific risk be diversified away by investing in both Atkore International and Acuity Brands 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 Atkore International and Acuity Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atkore International Group and Acuity Brands, you can compare the effects of market volatilities on Atkore International and Acuity Brands 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 Atkore International with a short position of Acuity Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atkore International and Acuity Brands.
Diversification Opportunities for Atkore International and Acuity Brands
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atkore and Acuity is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Atkore International Group and Acuity Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acuity Brands and Atkore International 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 Atkore International Group are associated (or correlated) with Acuity Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acuity Brands has no effect on the direction of Atkore International i.e., Atkore International and Acuity Brands go up and down completely randomly.
Pair Corralation between Atkore International and Acuity Brands
Given the investment horizon of 90 days Atkore International Group is expected to under-perform the Acuity Brands. In addition to that, Atkore International is 1.49 times more volatile than Acuity Brands. It trades about 0.0 of its total potential returns per unit of risk. Acuity Brands is currently generating about 0.09 per unit of volatility. If you would invest 16,886 in Acuity Brands on August 28, 2024 and sell it today you would earn a total of 16,093 from holding Acuity Brands or generate 95.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atkore International Group vs. Acuity Brands
Performance |
| Timeline |
| Atkore International |
| Acuity Brands |
Atkore International and Acuity Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atkore International and Acuity Brands
The main advantage of trading using opposite Atkore International and Acuity Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atkore International position performs unexpectedly, Acuity Brands 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 Acuity Brands will offset losses from the drop in Acuity Brands' long position.| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
| Acuity Brands vs. Bloom Energy Corp | Acuity Brands vs. Eos Energy Enterprises | Acuity Brands vs. Sunrise New Energy | Acuity Brands vs. GrafTech International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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