Correlation Between 26442UAG9 and Acco Brands

Can any of the company-specific risk be diversified away by investing in both 26442UAG9 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 26442UAG9 and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY PROGRESS and Acco Brands, you can compare the effects of market volatilities on 26442UAG9 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 26442UAG9 with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442UAG9 and Acco Brands.

Diversification Opportunities for 26442UAG9 and Acco Brands

-0.02

Correlation Coefficient

26442UAG9  Acco Brands

Good diversification

The 3 months correlation between 26442UAG9 and Acco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY PROGRESS and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and 26442UAG9 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 DUKE ENERGY PROGRESS 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 26442UAG9 i.e., 26442UAG9 and Acco Brands go up and down completely randomly.

Pair Corralation between 26442UAG9 and Acco Brands

Assuming the 90 days trading horizon DUKE ENERGY PROGRESS is expected to generate 0.28 times more return on investment than Acco Brands. However, DUKE ENERGY PROGRESS is 3.59 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 -0.09 per unit of risk. If you would invest  9,624  in DUKE ENERGY PROGRESS on December 23, 2024 and sell it today you would earn a total of  93.00  from holding DUKE ENERGY PROGRESS or generate 0.97% return on investment over 90 days.

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

DUKE ENERGY PROGRESS  vs.  Acco Brands

DUKE ENERGY PROGRESS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUKE ENERGY PROGRESS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442UAG9 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 26442UAG9 and Acco Brands

The main advantage of trading using opposite 26442UAG9 and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442UAG9 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 DUKE ENERGY PROGRESS 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..