Correlation Between Church Dwight and EXELON
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By analyzing existing cross correlation between Church Dwight and EXELON GENERATION LLC, you can compare the effects of market volatilities on Church Dwight and EXELON 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 Church Dwight with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Church Dwight and EXELON.
Diversification Opportunities for Church Dwight and EXELON
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Church and EXELON is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Church Dwight and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC and Church Dwight 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 Church Dwight are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Church Dwight i.e., Church Dwight and EXELON go up and down completely randomly.
Pair Corralation between Church Dwight and EXELON
Considering the 90-day investment horizon Church Dwight is expected to generate 1.32 times more return on investment than EXELON. However, Church Dwight is 1.32 times more volatile than EXELON GENERATION LLC. It trades about 0.33 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.19 per unit of risk. If you would invest 10,026 in Church Dwight on August 31, 2024 and sell it today you would earn a total of 1,010 from holding Church Dwight or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Church Dwight vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Church Dwight |
| EXELON GENERATION LLC |
Church Dwight and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Church Dwight and EXELON
The main advantage of trading using opposite Church Dwight and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Church Dwight position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Church Dwight vs. Kimberly Clark | Church Dwight vs. Colgate Palmolive | Church Dwight vs. Unilever PLC ADR | Church Dwight vs. Procter Gamble |
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 Stocks Directory module to find actively traded stocks across global markets.
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