Correlation Between Haymaker Acquisition and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Haymaker Acquisition 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 Haymaker Acquisition and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haymaker Acquisition Corp and Acco Brands, you can compare the effects of market volatilities on Haymaker Acquisition 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 Haymaker Acquisition with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haymaker Acquisition and Acco Brands.
Diversification Opportunities for Haymaker Acquisition and Acco Brands
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haymaker and Acco is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Haymaker Acquisition Corp and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Haymaker Acquisition 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 Haymaker Acquisition Corp 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 Haymaker Acquisition i.e., Haymaker Acquisition and Acco Brands go up and down completely randomly.
Pair Corralation between Haymaker Acquisition and Acco Brands
Given the investment horizon of 90 days Haymaker Acquisition is expected to generate 1.28 times less return on investment than Acco Brands. But when comparing it to its historical volatility, Haymaker Acquisition Corp is 9.54 times less risky than Acco Brands. It trades about 0.07 of its potential returns per unit of risk. Acco Brands is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 534.00 in Acco Brands on October 9, 2024 and sell it today you would lose (11.00) from holding Acco Brands or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.26% |
| Values | Daily Returns |
Haymaker Acquisition Corp vs. Acco Brands
Performance |
| Timeline |
| Haymaker Acquisition Corp |
| Acco Brands |
Haymaker Acquisition and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haymaker Acquisition and Acco Brands
The main advantage of trading using opposite Haymaker Acquisition and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haymaker Acquisition 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.| Haymaker Acquisition vs. Hurco Companies | Haymaker Acquisition vs. Celestica | Haymaker Acquisition vs. Everspin Technologies | Haymaker Acquisition vs. East Africa Metals |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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