Correlation Between Acco Brands and U-Haul Holding

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Can any of the company-specific risk be diversified away by investing in both Acco Brands and U-Haul Holding 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 U-Haul Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and U Haul Holding, you can compare the effects of market volatilities on Acco Brands and U-Haul Holding 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 U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and U-Haul Holding.

Diversification Opportunities for Acco Brands and U-Haul Holding

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Acco and U-Haul is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Acco Brands i.e., Acco Brands and U-Haul Holding go up and down completely randomly.

Pair Corralation between Acco Brands and U-Haul Holding

Given the investment horizon of 90 days Acco Brands is expected to generate 1.41 times more return on investment than U-Haul Holding. However, Acco Brands is 1.41 times more volatile than U Haul Holding. It trades about 0.08 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.06 per unit of risk. If you would invest  531.00  in Acco Brands on September 3, 2024 and sell it today you would earn a total of  51.00  from holding Acco Brands or generate 9.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Acco Brands  vs.  U Haul Holding

 Performance 
       Timeline  
Acco Brands 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Acco Brands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Acco Brands may actually be approaching a critical reversion point that can send shares even higher in January 2025.
U Haul Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, U-Haul Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Acco Brands and U-Haul Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acco Brands and U-Haul Holding

The main advantage of trading using opposite Acco Brands and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding's long position.
The idea behind Acco Brands and U Haul Holding 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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