Correlation Between SQUIRREL MEDIA and NEWELL RUBBERMAID
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and NEWELL RUBBERMAID 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 SQUIRREL MEDIA and NEWELL RUBBERMAID into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and NEWELL RUBBERMAID , you can compare the effects of market volatilities on SQUIRREL MEDIA and NEWELL RUBBERMAID 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 SQUIRREL MEDIA with a short position of NEWELL RUBBERMAID. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and NEWELL RUBBERMAID.
Diversification Opportunities for SQUIRREL MEDIA and NEWELL RUBBERMAID
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SQUIRREL and NEWELL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and NEWELL RUBBERMAID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL RUBBERMAID and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with NEWELL RUBBERMAID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL RUBBERMAID has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and NEWELL RUBBERMAID go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and NEWELL RUBBERMAID
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 2.55 times more return on investment than NEWELL RUBBERMAID. However, SQUIRREL MEDIA is 2.55 times more volatile than NEWELL RUBBERMAID . It trades about 0.31 of its potential returns per unit of risk. NEWELL RUBBERMAID is currently generating about 0.09 per unit of risk. If you would invest 119.00 in SQUIRREL MEDIA SA on October 24, 2024 and sell it today you would earn a total of 18.00 from holding SQUIRREL MEDIA SA or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. NEWELL RUBBERMAID
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| NEWELL RUBBERMAID |
SQUIRREL MEDIA and NEWELL RUBBERMAID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and NEWELL RUBBERMAID
The main advantage of trading using opposite SQUIRREL MEDIA and NEWELL RUBBERMAID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, NEWELL RUBBERMAID 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 NEWELL RUBBERMAID will offset losses from the drop in NEWELL RUBBERMAID's long position.| SQUIRREL MEDIA vs. The Walt Disney | SQUIRREL MEDIA vs. The Walt Disney | SQUIRREL MEDIA vs. Netflix | SQUIRREL MEDIA vs. Charter Communications |
| NEWELL RUBBERMAID vs. SQUIRREL MEDIA SA | NEWELL RUBBERMAID vs. Mitsubishi Gas Chemical | NEWELL RUBBERMAID vs. X FAB Silicon Foundries | NEWELL RUBBERMAID vs. CNVISION MEDIA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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