Correlation Between Acorn International and Lands End
Can any of the company-specific risk be diversified away by investing in both Acorn International and Lands End 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 Acorn International and Lands End into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn International and Lands End, you can compare the effects of market volatilities on Acorn International and Lands End 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 Acorn International with a short position of Lands End. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn International and Lands End.
Diversification Opportunities for Acorn International and Lands End
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acorn and Lands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acorn International and Lands End in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lands End and Acorn International 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 Acorn International are associated (or correlated) with Lands End. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lands End has no effect on the direction of Acorn International i.e., Acorn International and Lands End go up and down completely randomly.
Pair Corralation between Acorn International and Lands End
If you would invest 781.00 in Lands End on December 29, 2023 and sell it today you would earn a total of 223.00 from holding Lands End or generate 28.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Acorn International vs. Lands End
Performance |
Timeline |
Acorn International |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Lands End |
Acorn International and Lands End Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acorn International and Lands End
The main advantage of trading using opposite Acorn International and Lands End positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn International position performs unexpectedly, Lands End 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 Lands End will offset losses from the drop in Lands End's long position.Acorn International vs. Barrick Gold Corp | Acorn International vs. Insteel Industries | Acorn International vs. Nextplat Corp | Acorn International vs. Highway Holdings Limited |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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