Correlation Between Acco Brands and Shui On
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Shui On 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 Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Shui On Land, you can compare the effects of market volatilities on Acco Brands and Shui On 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 Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Shui On.
Diversification Opportunities for Acco Brands and Shui On
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acco and Shui is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land 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 Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of Acco Brands i.e., Acco Brands and Shui On go up and down completely randomly.
Pair Corralation between Acco Brands and Shui On
If you would invest 6.00 in Shui On Land on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Shui On Land or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Acco Brands vs. Shui On Land
Performance |
Timeline |
Acco Brands |
Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acco Brands and Shui On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and Shui On
The main advantage of trading using opposite Acco Brands and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.Acco Brands vs. International Consolidated Companies | Acco Brands vs. Frontera Group | Acco Brands vs. All American Pet | Acco Brands vs. XCPCNL Business Services |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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