Correlation Between Sterling Check and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Sterling Check 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 Sterling Check and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Check Corp and Acco Brands, you can compare the effects of market volatilities on Sterling Check 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 Sterling Check with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Check and Acco Brands.
Diversification Opportunities for Sterling Check and Acco Brands
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Acco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Check Corp and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Sterling Check 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 Sterling Check 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 Sterling Check i.e., Sterling Check and Acco Brands go up and down completely randomly.
Pair Corralation between Sterling Check and Acco Brands
Given the investment horizon of 90 days Sterling Check Corp is expected to generate 1.34 times more return on investment than Acco Brands. However, Sterling Check is 1.34 times more volatile than Acco Brands. It trades about 0.0 of its potential returns per unit of risk. Acco Brands is currently generating about -0.01 per unit of risk. If you would invest 1,898 in Sterling Check Corp on February 26, 2024 and sell it today you would lose (336.00) from holding Sterling Check Corp or give up 17.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Sterling Check Corp vs. Acco Brands
Performance |
Timeline |
Sterling Check Corp |
Acco Brands |
Sterling Check and Acco Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sterling Check and Acco Brands
The main advantage of trading using opposite Sterling Check and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Check 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.Sterling Check vs. ExlService Holdings | Sterling Check vs. WNS Holdings | Sterling Check vs. Gartner | Sterling Check vs. The Hackett Group |
Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research | Acco Brands vs. Broadridge Financial Solutions | Acco Brands vs. BrightView Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |