Correlation Between Graham Holdings and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Acco Brands, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Acco Brands.
Diversification Opportunities for Graham Holdings and Acco Brands
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Graham and Acco is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Graham Holdings 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 Graham Holdings 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 Graham Holdings i.e., Graham Holdings and Acco Brands go up and down completely randomly.
Pair Corralation between Graham Holdings and Acco Brands
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 1.14 times more return on investment than Acco Brands. However, Graham Holdings is 1.14 times more volatile than Acco Brands. It trades about -0.22 of its potential returns per unit of risk. Acco Brands is currently generating about -0.59 per unit of risk. If you would invest 95,074 in Graham Holdings Co on October 9, 2024 and sell it today you would lose (6,639) from holding Graham Holdings Co or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Acco Brands
Performance |
| Timeline |
| Graham Holdings |
| Acco Brands |
Graham Holdings and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Acco Brands
The main advantage of trading using opposite Graham Holdings and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |