Correlation Between Onyx Acquisition and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Onyx 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 Onyx 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 Onyx Acquisition Co and Acco Brands, you can compare the effects of market volatilities on Onyx 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 Onyx Acquisition with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Acquisition and Acco Brands.
Diversification Opportunities for Onyx Acquisition and Acco Brands
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Onyx and Acco is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Acquisition Co and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Onyx 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 Onyx Acquisition 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 Onyx Acquisition i.e., Onyx Acquisition and Acco Brands go up and down completely randomly.
Pair Corralation between Onyx Acquisition and Acco Brands
If you would invest 549.00 in Acco Brands on September 4, 2024 and sell it today you would earn a total of 64.00 from holding Acco Brands or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Onyx Acquisition Co vs. Acco Brands
Performance |
| Timeline |
| Onyx Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Acco Brands |
Onyx Acquisition and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onyx Acquisition and Acco Brands
The main advantage of trading using opposite Onyx Acquisition and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx 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.| Onyx Acquisition vs. Starbucks | Onyx Acquisition vs. Sweetgreen | Onyx Acquisition vs. Cracker Barrel Old | Onyx Acquisition vs. Dominos Pizza |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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