Correlation Between ACNB and Acorn Energy,

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

By analyzing existing cross correlation between ACNB Corporation and Acorn Energy, Common, you can compare the effects of market volatilities on ACNB and Acorn Energy, 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 ACNB with a short position of Acorn Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACNB and Acorn Energy,.

Diversification Opportunities for ACNB and Acorn Energy,

0.03

Correlation Coefficient

ACNB  Acorn Energy,

Significant diversification

The 3 months correlation between ACNB and Acorn is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ACNB Corp. and Acorn Energy, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorn Energy, Common and ACNB 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 ACNB Corporation are associated (or correlated) with Acorn Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorn Energy, Common has no effect on the direction of ACNB i.e., ACNB and Acorn Energy, go up and down completely randomly.

Pair Corralation between ACNB and Acorn Energy,

Given the investment horizon of 90 days ACNB is expected to generate 110.44 times less return on investment than Acorn Energy,. But when comparing it to its historical volatility, ACNB Corporation is 3.5 times less risky than Acorn Energy,. It trades about 0.01 of its potential returns per unit of risk. Acorn Energy, Common is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,700  in Acorn Energy, Common on May 3, 2025 and sell it today you would earn a total of  845.00  from holding Acorn Energy, Common or generate 49.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

ACNB Corp.  vs.  Acorn Energy, Common

ACNB

Risk-Adjusted Performance

Very Weak

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

Acorn Energy, Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acorn Energy, Common are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Acorn Energy, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACNB and Acorn Energy,

The main advantage of trading using opposite ACNB and Acorn Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACNB position performs unexpectedly, Acorn Energy, 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 Acorn Energy, will offset losses from the drop in Acorn Energy,'s long position.

The idea behind ACNB Corporation and Acorn Energy, Common 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.