Correlation Between DSS and Acco Brands

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

By analyzing existing cross correlation between DSS Inc and Acco Brands, you can compare the effects of market volatilities on DSS and Acco Brands 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 DSS with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and Acco Brands.

Diversification Opportunities for DSS and Acco Brands

0.03

Correlation Coefficient

DSS  Acco Brands

Significant diversification

The 3 months correlation between DSS and Acco is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and DSS 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 DSS Inc are associated (or correlated) with Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of DSS i.e., DSS and Acco Brands go up and down completely randomly.

Pair Corralation between DSS and Acco Brands

Considering the 90-day investment horizon DSS Inc is expected to generate 1.55 times more return on investment than Acco Brands. However, DSS is 1.55 times more volatile than Acco Brands. It trades about 0.07 of its potential returns per unit of risk. Acco Brands is currently generating about -0.09 per unit of risk. If you would invest  87.00  in DSS Inc on December 23, 2024 and sell it today you would earn a total of  13.00  from holding DSS Inc or generate 14.94% return on investment over 90 days.

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

DSS Inc  vs.  Acco Brands

DSS Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DSS Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, DSS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Acco Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acco Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with DSS and Acco Brands

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

The idea behind DSS Inc and Acco Brands 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.