Correlation Between Acme United and Upwork

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

By analyzing existing cross correlation between Acme United and Upwork Inc, you can compare the effects of market volatilities on Acme United and Upwork 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 Acme United with a short position of Upwork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Upwork.

Diversification Opportunities for Acme United and Upwork

-0.46

Correlation Coefficient

Acme United  Upwork

Very good diversification

The 3 months correlation between Acme and Upwork is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Upwork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upwork Inc and Acme United 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 Acme United are associated (or correlated) with Upwork. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upwork Inc has no effect on the direction of Acme United i.e., Acme United and Upwork go up and down completely randomly.

Pair Corralation between Acme United and Upwork

Considering the 90-day investment horizon Acme United is expected to generate 0.61 times more return on investment than Upwork. However, Acme United is 1.63 times less risky than Upwork. It trades about 0.07 of its potential returns per unit of risk. Upwork Inc is currently generating about -0.05 per unit of risk. If you would invest  3,760  in Acme United on May 4, 2025 and sell it today you would earn a total of  253.00  from holding Acme United or generate 6.73% return on investment over 90 days.

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

Acme United  vs.  Upwork Inc

Acme United

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Acme United are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Acme United may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Upwork Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upwork Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Acme United and Upwork

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

The idea behind Acme United and Upwork Inc 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.