Correlation Between Acco Brands and Canon
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Canon 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 Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Canon Inc ADR, you can compare the effects of market volatilities on Acco Brands and Canon 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 Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Canon.
Diversification Opportunities for Acco Brands and Canon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acco and Canon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Canon Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc ADR 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 Canon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Inc ADR has no effect on the direction of Acco Brands i.e., Acco Brands and Canon go up and down completely randomly.
Pair Corralation between Acco Brands and Canon
If you would invest 2,190 in Canon Inc ADR on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Canon Inc ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Acco Brands vs. Canon Inc ADR
Performance |
| Timeline |
| Acco Brands |
| Canon Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acco Brands and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Canon
The main advantage of trading using opposite Acco Brands and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Canon 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 Canon will offset losses from the drop in Canon's long position.| Acco Brands vs. Avalon Holdings | Acco Brands vs. LanzaTech Global | Acco Brands vs. Ambipar Emergency Response | Acco Brands vs. Houston Natural Resources |
| Canon vs. Fevertree Drinks Plc | Canon vs. Ambev SA ADR | Canon vs. LB Foster | Canon vs. National Beverage Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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