Correlation Between Acco Brands and BAKER
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By analyzing existing cross correlation between Acco Brands and BAKER HUGHES A, you can compare the effects of market volatilities on Acco Brands and BAKER 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 BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and BAKER.
Diversification Opportunities for Acco Brands and BAKER
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acco and BAKER is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A 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 BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of Acco Brands i.e., Acco Brands and BAKER go up and down completely randomly.
Pair Corralation between Acco Brands and BAKER
Given the investment horizon of 90 days Acco Brands is expected to generate 6.79 times more return on investment than BAKER. However, Acco Brands is 6.79 times more volatile than BAKER HUGHES A. It trades about 0.01 of its potential returns per unit of risk. BAKER HUGHES A is currently generating about -0.15 per unit of risk. If you would invest 530.00 in Acco Brands on September 26, 2024 and sell it today you would lose (3.00) from holding Acco Brands or give up 0.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Acco Brands vs. BAKER HUGHES A
Performance |
Timeline |
Acco Brands |
BAKER HUGHES A |
Acco Brands and BAKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and BAKER
The main advantage of trading using opposite Acco Brands and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.Acco Brands vs. International Consolidated Companies | Acco Brands vs. Frontera Group | Acco Brands vs. All American Pet | Acco Brands vs. XCPCNL Business Services |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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