Correlation Between Estee Lauder and 126408HJ5
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By analyzing existing cross correlation between Estee Lauder Companies and CSX P 38, you can compare the effects of market volatilities on Estee Lauder and 126408HJ5 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 Estee Lauder with a short position of 126408HJ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and 126408HJ5.
Diversification Opportunities for Estee Lauder and 126408HJ5
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Estee and 126408HJ5 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and CSX P 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 126408HJ5 and Estee Lauder 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 Estee Lauder Companies are associated (or correlated) with 126408HJ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 126408HJ5 has no effect on the direction of Estee Lauder i.e., Estee Lauder and 126408HJ5 go up and down completely randomly.
Pair Corralation between Estee Lauder and 126408HJ5
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to under-perform the 126408HJ5. In addition to that, Estee Lauder is 21.93 times more volatile than CSX P 38. It trades about -0.09 of its total potential returns per unit of risk. CSX P 38 is currently generating about -0.02 per unit of volatility. If you would invest 9,763 in CSX P 38 on November 29, 2024 and sell it today you would lose (11.00) from holding CSX P 38 or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Estee Lauder Companies vs. CSX P 38
Performance |
| Timeline |
| Estee Lauder Companies |
| 126408HJ5 |
Estee Lauder and 126408HJ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and 126408HJ5
The main advantage of trading using opposite Estee Lauder and 126408HJ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder position performs unexpectedly, 126408HJ5 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 126408HJ5 will offset losses from the drop in 126408HJ5's long position.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty Inc |
| 126408HJ5 vs. Monster Beverage Corp | 126408HJ5 vs. STMicroelectronics NV ADR | 126408HJ5 vs. Elmos Semiconductor SE | 126408HJ5 vs. Videolocity International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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