Correlation Between ACCO Brands and KENEDIX OFFICE

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Can any of the company-specific risk be diversified away by investing in both ACCO Brands and KENEDIX OFFICE 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 KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACCO Brands and KENEDIX OFFICE INV, you can compare the effects of market volatilities on ACCO Brands and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCO Brands and KENEDIX OFFICE.

Diversification Opportunities for ACCO Brands and KENEDIX OFFICE

ACCOKENEDIXDiversified AwayACCOKENEDIXDiversified Away100%
-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between ACCO and KENEDIX is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ACCO Brands and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of ACCO Brands i.e., ACCO Brands and KENEDIX OFFICE go up and down completely randomly.

Pair Corralation between ACCO Brands and KENEDIX OFFICE

Assuming the 90 days horizon ACCO Brands is expected to under-perform the KENEDIX OFFICE. In addition to that, ACCO Brands is 1.25 times more volatile than KENEDIX OFFICE INV. It trades about -0.1 of its total potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.06 per unit of volatility. If you would invest  88,000  in KENEDIX OFFICE INV on November 18, 2024 and sell it today you would earn a total of  4,500  from holding KENEDIX OFFICE INV or generate 5.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ACCO Brands  vs.  KENEDIX OFFICE INV

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50510
JavaScript chart by amCharts 3.21.15A3B K9R
       Timeline  
ACCO Brands 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ACCO Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4.855.25.45.65.86
KENEDIX OFFICE INV 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in KENEDIX OFFICE INV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, KENEDIX OFFICE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb870880890900910920930940950

ACCO Brands and KENEDIX OFFICE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.27-2.45-1.63-0.810.01260.761.512.273.03 0.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15A3B K9R
       Returns  

Pair Trading with ACCO Brands and KENEDIX OFFICE

The main advantage of trading using opposite ACCO Brands and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCO Brands position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.
The idea behind ACCO Brands and KENEDIX OFFICE INV 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.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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