Correlation Between Acco Brands and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Inflection Point 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 Acco Brands and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Inflection Point Acquisition, you can compare the effects of market volatilities on Acco Brands and Inflection Point 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 Acco Brands with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Inflection Point.
Diversification Opportunities for Acco Brands and Inflection Point
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acco and Inflection is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq and Acco Brands 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 Acco Brands are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Acco Brands i.e., Acco Brands and Inflection Point go up and down completely randomly.
Pair Corralation between Acco Brands and Inflection Point
Given the investment horizon of 90 days Acco Brands is expected to under-perform the Inflection Point. In addition to that, Acco Brands is 7.92 times more volatile than Inflection Point Acquisition. It trades about -0.21 of its total potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.09 per unit of volatility. If you would invest 1,051 in Inflection Point Acquisition on February 4, 2024 and sell it today you would earn a total of 4.00 from holding Inflection Point Acquisition or generate 0.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Acco Brands vs. Inflection Point Acquisition
Performance |
Timeline |
Acco Brands |
Inflection Point Acq |
Acco Brands and Inflection Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and Inflection Point
The main advantage of trading using opposite Acco Brands and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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