Correlation Between Gannett and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Gannett 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 Gannett and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gannett Co and Acco Brands, you can compare the effects of market volatilities on Gannett 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 Gannett with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gannett and Acco Brands.
Diversification Opportunities for Gannett and Acco Brands
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gannett and Acco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Gannett 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 Gannett Co 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 Gannett i.e., Gannett and Acco Brands go up and down completely randomly.
Pair Corralation between Gannett and Acco Brands
Considering the 90-day investment horizon Gannett Co is expected to generate 2.33 times more return on investment than Acco Brands. However, Gannett is 2.33 times more volatile than Acco Brands. It trades about -0.07 of its potential returns per unit of risk. Acco Brands is currently generating about -0.59 per unit of risk. If you would invest 544.00 in Gannett Co on October 9, 2024 and sell it today you would lose (29.00) from holding Gannett Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gannett Co vs. Acco Brands
Performance |
| Timeline |
| Gannett |
| Acco Brands |
Gannett and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gannett and Acco Brands
The main advantage of trading using opposite Gannett and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett 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.| Gannett vs. Dallasnews Corp | Gannett vs. Scholastic | Gannett vs. Pearson PLC ADR | Gannett vs. New York Times |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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