Correlation Between CCL Industries and Acorn Energy,

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

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

Diversification Opportunities for CCL Industries and Acorn Energy,

-0.31

Correlation Coefficient

CCL Industries  Acorn Energy,

Very good diversification

The 3 months correlation between CCL and Acorn is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries 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 CCL Industries 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 CCL Industries 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 CCL Industries i.e., CCL Industries and Acorn Energy, go up and down completely randomly.

Pair Corralation between CCL Industries and Acorn Energy,

Assuming the 90 days horizon CCL Industries is expected to generate 19.75 times less return on investment than Acorn Energy,. But when comparing it to its historical volatility, CCL Industries is 3.99 times less risky than Acorn Energy,. It trades about 0.03 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  1,795  in Acorn Energy, Common on May 13, 2025 and sell it today you would earn a total of  971.00  from holding Acorn Energy, Common or generate 54.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

CCL Industries  vs.  Acorn Energy, Common

CCL Industries

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CCL Industries are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental drivers, CCL Industries is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 CCL Industries and Acorn Energy,

The main advantage of trading using opposite CCL Industries and Acorn Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries 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 CCL Industries 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.