Correlation Between Acco Brands and New York
Can any of the company-specific risk be diversified away by investing in both Acco Brands and New York 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 New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and New York Times, you can compare the effects of market volatilities on Acco Brands and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and New York.
Diversification Opportunities for Acco Brands and New York
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acco and New is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and New York Times in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Times 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Times has no effect on the direction of Acco Brands i.e., Acco Brands and New York go up and down completely randomly.
Pair Corralation between Acco Brands and New York
Given the investment horizon of 90 days Acco Brands is expected to under-perform the New York. In addition to that, Acco Brands is 2.31 times more volatile than New York Times. It trades about -0.2 of its total potential returns per unit of risk. New York Times is currently generating about -0.17 per unit of volatility. If you would invest 4,316 in New York Times on January 19, 2024 and sell it today you would lose (155.00) from holding New York Times or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Acco Brands vs. New York Times
Performance |
| Timeline |
| Acco Brands |
| New York Times |
Acco Brands and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and New York
The main advantage of trading using opposite Acco Brands and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| New York vs. Lee Enterprises Incorporated | New York vs. Scholastic | New York vs. Pearson PLC ADR | New York vs. John Wiley Sons |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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