Correlation Between Acco Brands and Robert Half
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Robert Half 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 Robert Half into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Robert Half International, you can compare the effects of market volatilities on Acco Brands and Robert Half 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 Robert Half. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Robert Half.
Diversification Opportunities for Acco Brands and Robert Half
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acco and Robert is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International 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 Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of Acco Brands i.e., Acco Brands and Robert Half go up and down completely randomly.
Pair Corralation between Acco Brands and Robert Half
Given the investment horizon of 90 days Acco Brands is expected to under-perform the Robert Half. In addition to that, Acco Brands is 1.14 times more volatile than Robert Half International. It trades about -0.42 of its total potential returns per unit of risk. Robert Half International is currently generating about -0.45 per unit of volatility. If you would invest 8,019 in Robert Half International on January 20, 2024 and sell it today you would lose (996.00) from holding Robert Half International or give up 12.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Acco Brands vs. Robert Half International
Performance |
Timeline |
Acco Brands |
Robert Half International |
Acco Brands and Robert Half Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and Robert Half
The main advantage of trading using opposite Acco Brands and Robert Half positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Robert Half 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 Robert Half will offset losses from the drop in Robert Half'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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