Correlation Between CKX Lands and Acme United
Can any of the company-specific risk be diversified away by investing in both CKX Lands and Acme United 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 Acme United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKX Lands and Acme United, you can compare the effects of market volatilities on CKX Lands and Acme United 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 Acme United. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKX Lands and Acme United.
Diversification Opportunities for CKX Lands and Acme United
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CKX and Acme is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and Acme United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acme United 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 Acme United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acme United has no effect on the direction of CKX Lands i.e., CKX Lands and Acme United go up and down completely randomly.
Pair Corralation between CKX Lands and Acme United
Considering the 90-day investment horizon CKX Lands is expected to under-perform the Acme United. But the stock apears to be less risky and, when comparing its historical volatility, CKX Lands is 1.13 times less risky than Acme United. The stock trades about -0.29 of its potential returns per unit of risk. The Acme United is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,050 in Acme United on August 27, 2024 and sell it today you would earn a total of 246.00 from holding Acme United or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
CKX Lands vs. Acme United
Performance |
| Timeline |
| CKX Lands |
| Acme United |
CKX Lands and Acme United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKX Lands and Acme United
The main advantage of trading using opposite CKX Lands and Acme United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKX Lands position performs unexpectedly, Acme United 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 Acme United will offset losses from the drop in Acme United's long position.| CKX Lands vs. Investcorp Credit Management | CKX Lands vs. Medalist Diversified Reit | CKX Lands vs. Aquagold International | CKX Lands vs. Morningstar Unconstrained Allocation |
| Acme United vs. Mannatech Incorporated | Acme United vs. Inter Parfums | Acme United vs. Nu Skin Enterprises | Acme United vs. Procter Gamble |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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