Correlation Between Pinterest and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Pinterest 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 Pinterest and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Acco Brands, you can compare the effects of market volatilities on Pinterest 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 Pinterest with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Acco Brands.
Diversification Opportunities for Pinterest and Acco Brands
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinterest and Acco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Pinterest 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 Pinterest 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 Pinterest i.e., Pinterest and Acco Brands go up and down completely randomly.
Pair Corralation between Pinterest and Acco Brands
Given the investment horizon of 90 days Pinterest is expected to under-perform the Acco Brands. In addition to that, Pinterest is 1.28 times more volatile than Acco Brands. It trades about -0.05 of its total potential returns per unit of risk. Acco Brands is currently generating about 0.34 per unit of volatility. If you would invest 488.00 in Acco Brands on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Acco Brands or generate 22.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinterest vs. Acco Brands
Performance |
| Timeline |
| Acco Brands |
Pinterest and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Acco Brands
The main advantage of trading using opposite Pinterest and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest 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.| Pinterest vs. Alphabet Inc Class C | Pinterest vs. Twilio Inc | Pinterest vs. Snap Inc | Pinterest vs. Baidu Inc |
| 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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