Correlation Between Acco Brands and Lipocine
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Lipocine 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 Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Lipocine, you can compare the effects of market volatilities on Acco Brands and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Lipocine.
Diversification Opportunities for Acco Brands and Lipocine
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acco and Lipocine is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Acco Brands i.e., Acco Brands and Lipocine go up and down completely randomly.
Pair Corralation between Acco Brands and Lipocine
Given the investment horizon of 90 days Acco Brands is expected to generate 0.46 times more return on investment than Lipocine. However, Acco Brands is 2.18 times less risky than Lipocine. It trades about 0.01 of its potential returns per unit of risk. Lipocine is currently generating about 0.0 per unit of risk. If you would invest 460.00 in Acco Brands on December 5, 2024 and sell it today you would lose (19.00) from holding Acco Brands or give up 4.13% 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. Lipocine
Performance |
Timeline |
Acco Brands |
Lipocine |
Acco Brands and Lipocine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and Lipocine
The main advantage of trading using opposite Acco Brands and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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