Correlation Between BOARDWALK and Acme United
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By analyzing existing cross correlation between BOARDWALK PIPELINES LP and Acme United, you can compare the effects of market volatilities on BOARDWALK and Acme United 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 BOARDWALK with a short position of Acme United. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOARDWALK and Acme United.
Diversification Opportunities for BOARDWALK and Acme United
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BOARDWALK and Acme is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BOARDWALK PIPELINES LP and Acme United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acme United and BOARDWALK 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 BOARDWALK PIPELINES LP are associated (or correlated) with Acme United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acme United has no effect on the direction of BOARDWALK i.e., BOARDWALK and Acme United go up and down completely randomly.
Pair Corralation between BOARDWALK and Acme United
Assuming the 90 days trading horizon BOARDWALK PIPELINES LP is expected to under-perform the Acme United. But the bond apears to be less risky and, when comparing its historical volatility, BOARDWALK PIPELINES LP is 8.94 times less risky than Acme United. The bond trades about -0.01 of its potential returns per unit of risk. The Acme United is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,235 in Acme United on September 4, 2024 and sell it today you would earn a total of 2,183 from holding Acme United or generate 97.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.55% |
| Values | Daily Returns |
BOARDWALK PIPELINES LP vs. Acme United
Performance |
| Timeline |
| BOARDWALK PIPELINES |
| Acme United |
BOARDWALK and Acme United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOARDWALK and Acme United
The main advantage of trading using opposite BOARDWALK and Acme United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOARDWALK position performs unexpectedly, Acme United 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 Acme United will offset losses from the drop in Acme United's long position.| BOARDWALK vs. Analog Devices | BOARDWALK vs. Comstock Holding Companies | BOARDWALK vs. Western Acquisition Ventures | BOARDWALK vs. IPG Photonics |
| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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