Correlation Between Acorn International and Lands End

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Acorn International  vs.  Lands End

 Performance 
       Timeline  
Acorn International 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Acorn International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Acorn International is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Lands End 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Lands End are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Lands End may actually be approaching a critical reversion point that can send shares even higher in April 2024.

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.
The idea behind Acorn International and Lands End pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Stocks Directory
Find actively traded stocks across global markets
Bonds Directory
Find actively traded corporate debentures issued by US companies