Correlation Between Acco Brands and Starwin Media

Can any of the company-specific risk be diversified away by investing in both Acco Brands and Starwin Media 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 Starwin Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acco Brands and Starwin Media Holdings, you can compare the effects of market volatilities on Acco Brands and Starwin Media 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 Starwin Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Starwin Media.

Diversification Opportunities for Acco Brands and Starwin Media

0.0

Correlation Coefficient

Acco Brands  Starwin Media

Pay attention - limited upside

The 3 months correlation between Acco and Starwin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Starwin Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starwin Media Holdings 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 Starwin Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starwin Media Holdings has no effect on the direction of Acco Brands i.e., Acco Brands and Starwin Media go up and down completely randomly.

Pair Corralation between Acco Brands and Starwin Media

If you would invest  0.02  in Starwin Media Holdings on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Starwin Media Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acco Brands  vs.  Starwin Media Holdings

Acco Brands

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acco Brands are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Acco Brands is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Starwin Media Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Starwin Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Starwin Media is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Acco Brands and Starwin Media

The main advantage of trading using opposite Acco Brands and Starwin Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Starwin Media 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 Starwin Media will offset losses from the drop in Starwin Media's long position.

The idea behind Acco Brands and Starwin Media Holdings 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.