Correlation Between GENERAL and Acco Brands
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By analyzing existing cross correlation between GENERAL DYNAMICS P and Acco Brands, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Acco Brands.
Diversification Opportunities for GENERAL and Acco Brands
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GENERAL and Acco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and GENERAL 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 GENERAL DYNAMICS 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 GENERAL i.e., GENERAL and Acco Brands go up and down completely randomly.
Pair Corralation between GENERAL and Acco Brands
Assuming the 90 days trading horizon GENERAL DYNAMICS P is expected to under-perform the Acco Brands. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL DYNAMICS P is 2.59 times less risky than Acco Brands. The bond trades about -0.1 of its potential returns per unit of risk. The Acco Brands is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Acco Brands on September 12, 2024 and sell it today you would lose (5.00) from holding Acco Brands or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. Acco Brands
Performance |
| Timeline |
| GENERAL DYNAMICS P |
| Acco Brands |
GENERAL and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Acco Brands
The main advantage of trading using opposite GENERAL and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Acco Brands | GENERAL vs. Entegris | GENERAL vs. Teradyne | GENERAL vs. Lincoln Educational Services |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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