Correlation Between CKX Lands and ACNB
Can any of the company-specific risk be diversified away by investing in both CKX Lands and ACNB 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 CKX Lands and ACNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKX Lands and ACNB Corporation, you can compare the effects of market volatilities on CKX Lands and ACNB 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 CKX Lands with a short position of ACNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKX Lands and ACNB.
Diversification Opportunities for CKX Lands and ACNB
Very good diversification
The 3 months correlation between CKX and ACNB is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and ACNB Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACNB and CKX Lands 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 CKX Lands are associated (or correlated) with ACNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACNB has no effect on the direction of CKX Lands i.e., CKX Lands and ACNB go up and down completely randomly.
Pair Corralation between CKX Lands and ACNB
Considering the 90-day investment horizon CKX Lands is expected to generate 30.67 times more return on investment than ACNB. However, CKX Lands is 30.67 times more volatile than ACNB Corporation. It trades about 0.08 of its potential returns per unit of risk. ACNB Corporation is currently generating about 0.12 per unit of risk. If you would invest 1,383 in CKX Lands on August 24, 2024 and sell it today you would lose (132.00) from holding CKX Lands or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.2% |
| Values | Daily Returns |
CKX Lands vs. ACNB Corp.
Performance |
| Timeline |
| CKX Lands |
| ACNB |
CKX Lands and ACNB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKX Lands and ACNB
The main advantage of trading using opposite CKX Lands and ACNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKX Lands position performs unexpectedly, ACNB 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 ACNB will offset losses from the drop in ACNB's long position.| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. XXL Energy Corp | CKX Lands vs. Magnolia Oil Gas |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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