Correlation Between AMREP and Acco Brands
Can any of the company-specific risk be diversified away by investing in both AMREP and Acco 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 AMREP and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Acco Brands, you can compare the effects of market volatilities on AMREP and Acco 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 AMREP with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Acco Brands.
Diversification Opportunities for AMREP and Acco Brands
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMREP and Acco is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and AMREP 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 AMREP are associated (or correlated) with Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of AMREP i.e., AMREP and Acco Brands go up and down completely randomly.
Pair Corralation between AMREP and Acco Brands
Considering the 90-day investment horizon AMREP is expected to generate 1.27 times more return on investment than Acco Brands. However, AMREP is 1.27 times more volatile than Acco Brands. It trades about 0.1 of its potential returns per unit of risk. Acco Brands is currently generating about 0.02 per unit of risk. If you would invest 1,101 in AMREP on August 30, 2024 and sell it today you would earn a total of 2,439 from holding AMREP or generate 221.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMREP vs. Acco Brands
Performance |
| Timeline |
| AMREP |
| Acco Brands |
AMREP and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Acco Brands
The main advantage of trading using opposite AMREP and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Acco 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 Acco Brands will offset losses from the drop in Acco Brands' long position.| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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