Correlation Between Estee Lauder and EXELON
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By analyzing existing cross correlation between Estee Lauder Companies and EXELON GENERATION LLC, you can compare the effects of market volatilities on Estee Lauder 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 Estee Lauder with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and EXELON.
Diversification Opportunities for Estee Lauder and EXELON
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Estee and EXELON is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies 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 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 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 Estee Lauder i.e., Estee Lauder and EXELON go up and down completely randomly.
Pair Corralation between Estee Lauder and EXELON
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to under-perform the EXELON. In addition to that, Estee Lauder is 8.44 times more volatile than EXELON GENERATION LLC. It trades about -0.19 of its total potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.17 per unit of volatility. If you would invest 10,729 in EXELON GENERATION LLC on August 27, 2024 and sell it today you would lose (209.00) from holding EXELON GENERATION LLC or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Estee Lauder Companies vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Estee Lauder Companies |
| EXELON GENERATION LLC |
Estee Lauder and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and EXELON
The main advantage of trading using opposite Estee Lauder and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder 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.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Kimberly Clark |
| EXELON vs. Toro Co | EXELON vs. Estee Lauder Companies | EXELON vs. Univest Pennsylvania | EXELON vs. Glacier Bancorp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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