Correlation Between Acco Brands and Deluxe
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Deluxe 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 Deluxe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Deluxe, you can compare the effects of market volatilities on Acco Brands and Deluxe 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 Deluxe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Deluxe.
Diversification Opportunities for Acco Brands and Deluxe
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acco and Deluxe is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Deluxe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deluxe 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 Deluxe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deluxe has no effect on the direction of Acco Brands i.e., Acco Brands and Deluxe go up and down completely randomly.
Pair Corralation between Acco Brands and Deluxe
Given the investment horizon of 90 days Acco Brands is expected to generate 3.95 times less return on investment than Deluxe. In addition to that, Acco Brands is 1.03 times more volatile than Deluxe. It trades about 0.02 of its total potential returns per unit of risk. Deluxe is currently generating about 0.1 per unit of volatility. If you would invest 1,750 in Deluxe on February 6, 2024 and sell it today you would earn a total of 466.00 from holding Deluxe or generate 26.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Deluxe
Performance |
| Timeline |
| Acco Brands |
| Deluxe |
Acco Brands and Deluxe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Deluxe
The main advantage of trading using opposite Acco Brands and Deluxe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Deluxe 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 Deluxe will offset losses from the drop in Deluxe's long position.| Acco Brands vs. Steel Partners Holdings | Acco Brands vs. Compass Diversified | Acco Brands vs. Brookfield Business Partners | Acco Brands vs. Tejon Ranch Co |
| Deluxe vs. AGBA Acquisition Limited | Deluxe vs. CannBioRx Life Sciences | Deluxe vs. GCM Grosvenor | Deluxe vs. CuriosityStream |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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