Correlation Between Acme United and Civeo Corp
Can any of the company-specific risk be diversified away by investing in both Acme United and Civeo Corp 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 Civeo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and Civeo Corp, you can compare the effects of market volatilities on Acme United and Civeo Corp 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 Civeo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Civeo Corp.
Diversification Opportunities for Acme United and Civeo Corp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acme and Civeo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Civeo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civeo Corp 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 Civeo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civeo Corp has no effect on the direction of Acme United i.e., Acme United and Civeo Corp go up and down completely randomly.
Pair Corralation between Acme United and Civeo Corp
Considering the 90-day investment horizon Acme United is expected to under-perform the Civeo Corp. But the stock apears to be less risky and, when comparing its historical volatility, Acme United is 1.34 times less risky than Civeo Corp. The stock trades about -0.13 of its potential returns per unit of risk. The Civeo Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,339 in Civeo Corp on September 6, 2025 and sell it today you would lose (115.00) from holding Civeo Corp or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acme United vs. Civeo Corp
Performance |
| Timeline |
| Acme United |
| Civeo Corp |
Acme United and Civeo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and Civeo Corp
The main advantage of trading using opposite Acme United and Civeo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, Civeo Corp 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 Civeo Corp will offset losses from the drop in Civeo Corp's long position.| Acme United vs. Japan Airlines Ltd | Acme United vs. BV Financial, Common | Acme United vs. Tompkins Financial | Acme United vs. Summit Bank Group |
| Civeo Corp vs. Mitsubishi UFJ Lease | Civeo Corp vs. Smith Micro Software | Civeo Corp vs. Net Lease Office | Civeo Corp vs. Air Lease |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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