Correlation Between Imax Corp and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Imax Corp 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 Imax Corp and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Acco Brands, you can compare the effects of market volatilities on Imax Corp 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 Imax Corp with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Acco Brands.
Diversification Opportunities for Imax Corp and Acco Brands
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Imax and Acco is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Imax Corp 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 Imax Corp 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 Imax Corp i.e., Imax Corp and Acco Brands go up and down completely randomly.
Pair Corralation between Imax Corp and Acco Brands
Given the investment horizon of 90 days Imax Corp is expected to generate 0.6 times more return on investment than Acco Brands. However, Imax Corp is 1.67 times less risky than Acco Brands. It trades about 0.02 of its potential returns per unit of risk. Acco Brands is currently generating about -0.08 per unit of risk. If you would invest 2,465 in Imax Corp on December 18, 2024 and sell it today you would earn a total of 20.00 from holding Imax Corp or generate 0.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Imax Corp vs. Acco Brands
Performance |
Timeline |
Imax Corp |
Acco Brands |
Imax Corp and Acco Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Imax Corp and Acco Brands
The main advantage of trading using opposite Imax Corp and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp 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.Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Equity Valuation Check real value of public entities based on technical and fundamental data |