Correlation Between Traeger and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Traeger and Whirlpool 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 Traeger and Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traeger and Whirlpool, you can compare the effects of market volatilities on Traeger and Whirlpool 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 Traeger with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traeger and Whirlpool.
Diversification Opportunities for Traeger and Whirlpool
Excellent diversification
The 3 months correlation between Traeger and Whirlpool is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Traeger and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool and Traeger 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 Traeger are associated (or correlated) with Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of Traeger i.e., Traeger and Whirlpool go up and down completely randomly.
Pair Corralation between Traeger and Whirlpool
Given the investment horizon of 90 days Traeger is expected to generate 2.08 times more return on investment than Whirlpool. However, Traeger is 2.08 times more volatile than Whirlpool. It trades about 0.01 of its potential returns per unit of risk. Whirlpool is currently generating about 0.0 per unit of risk. If you would invest 423.00 in Traeger on August 27, 2024 and sell it today you would lose (128.00) from holding Traeger or give up 30.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Traeger vs. Whirlpool
Performance |
| Timeline |
| Traeger |
| Whirlpool |
Traeger and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traeger and Whirlpool
The main advantage of trading using opposite Traeger and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traeger position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Traeger vs. Sleep Number Corp | Traeger vs. Tempur Sealy International | Traeger vs. The Lovesac | Traeger vs. MillerKnoll |
| Whirlpool vs. Ethan Allen Interiors | Whirlpool vs. Mohawk Industries | Whirlpool vs. Tempur Sealy International | Whirlpool vs. MillerKnoll |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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