Correlation Between 06051GGA1 and Acco Brands
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By analyzing existing cross correlation between BANK AMER P and Acco Brands, you can compare the effects of market volatilities on 06051GGA1 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 06051GGA1 with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06051GGA1 and Acco Brands.
Diversification Opportunities for 06051GGA1 and Acco Brands
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 06051GGA1 and Acco is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BANK AMER P and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and 06051GGA1 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 BANK AMER P 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 06051GGA1 i.e., 06051GGA1 and Acco Brands go up and down completely randomly.
Pair Corralation between 06051GGA1 and Acco Brands
Assuming the 90 days trading horizon BANK AMER P is expected to under-perform the Acco Brands. But the bond apears to be less risky and, when comparing its historical volatility, BANK AMER P is 1.62 times less risky than Acco Brands. The bond trades about -0.22 of its potential returns per unit of risk. The Acco Brands is currently generating about 0.33 of returns per unit of risk over similar time horizon. 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 | 95.45% |
| Values | Daily Returns |
BANK AMER P vs. Acco Brands
Performance |
| Timeline |
| BANK AMER P |
| Acco Brands |
06051GGA1 and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06051GGA1 and Acco Brands
The main advantage of trading using opposite 06051GGA1 and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06051GGA1 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.| 06051GGA1 vs. Papaya Growth Opportunity | 06051GGA1 vs. Valens | 06051GGA1 vs. CECO Environmental Corp | 06051GGA1 vs. Highway Holdings Limited |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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