Correlation Between Electrolux Professional and Sleep Number
Can any of the company-specific risk be diversified away by investing in both Electrolux Professional and Sleep Number 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 Electrolux Professional and Sleep Number into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrolux Professional AB and Sleep Number Corp, you can compare the effects of market volatilities on Electrolux Professional and Sleep Number 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 Electrolux Professional with a short position of Sleep Number. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrolux Professional and Sleep Number.
Diversification Opportunities for Electrolux Professional and Sleep Number
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electrolux and Sleep is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Electrolux Professional AB and Sleep Number Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sleep Number Corp and Electrolux Professional 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 Electrolux Professional AB are associated (or correlated) with Sleep Number. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sleep Number Corp has no effect on the direction of Electrolux Professional i.e., Electrolux Professional and Sleep Number go up and down completely randomly.
Pair Corralation between Electrolux Professional and Sleep Number
If you would invest 1,380 in Sleep Number Corp on September 13, 2024 and sell it today you would earn a total of 540.00 from holding Sleep Number Corp or generate 39.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Electrolux Professional AB vs. Sleep Number Corp
Performance |
| Timeline |
| Electrolux Professional |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sleep Number Corp |
Electrolux Professional and Sleep Number Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrolux Professional and Sleep Number
The main advantage of trading using opposite Electrolux Professional and Sleep Number positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrolux Professional position performs unexpectedly, Sleep Number 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 Sleep Number will offset losses from the drop in Sleep Number's long position.| Electrolux Professional vs. PACIFIC ONLINE | Electrolux Professional vs. SLR Investment Corp | Electrolux Professional vs. AOYAMA TRADING | Electrolux Professional vs. CARSALESCOM |
| Sleep Number vs. AGNC INVESTMENT | Sleep Number vs. CVR Medical Corp | Sleep Number vs. HK Electric Investments | Sleep Number vs. CDL 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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