Correlation Between Catalyst Pharmaceuticals and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and Acco Brands, you can compare the effects of market volatilities on Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Acco Brands.
Diversification Opportunities for Catalyst Pharmaceuticals and Acco Brands
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catalyst and Acco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Acco Brands go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Acco Brands
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to under-perform the Acco Brands. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Pharmaceuticals is 1.29 times less risky than Acco Brands. The stock trades about -0.01 of its potential returns per unit of risk. The Acco Brands is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 481.00 in Acco Brands on August 24, 2024 and sell it today you would earn a total of 86.00 from holding Acco Brands or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Acco Brands
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Acco Brands |
Catalyst Pharmaceuticals and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Acco Brands
The main advantage of trading using opposite Catalyst Pharmaceuticals and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals 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.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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