Correlation Between Outfront and Acco Brands
Specify exactly 2 symbols:
By analyzing existing cross correlation between Outfront Media Capital and Acco Brands, you can compare the effects of market volatilities on Outfront 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 Outfront with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outfront and Acco Brands.
Diversification Opportunities for Outfront and Acco Brands
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Outfront and Acco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Outfront Media Capital and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Outfront 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 Outfront Media Capital 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 Outfront i.e., Outfront and Acco Brands go up and down completely randomly.
Pair Corralation between Outfront and Acco Brands
Assuming the 90 days trading horizon Outfront is expected to generate 21.92 times less return on investment than Acco Brands. But when comparing it to its historical volatility, Outfront Media Capital is 2.37 times less risky than Acco Brands. It trades about 0.02 of its potential returns per unit of risk. Acco Brands is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Acco Brands on September 13, 2024 and sell it today you would earn a total of 90.00 from holding Acco Brands or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.86% |
| Values | Daily Returns |
Outfront Media Capital vs. Acco Brands
Performance |
| Timeline |
| Outfront Media Capital |
| Acco Brands |
Outfront and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outfront and Acco Brands
The main advantage of trading using opposite Outfront and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outfront 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.The idea behind Outfront Media Capital and Acco Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |