Correlation Between Estee Lauder and 48242WAC0
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By analyzing existing cross correlation between Estee Lauder Companies and KBR INC 475, you can compare the effects of market volatilities on Estee Lauder and 48242WAC0 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 48242WAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and 48242WAC0.
Diversification Opportunities for Estee Lauder and 48242WAC0
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Estee and 48242WAC0 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and KBR INC 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBR INC 475 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 48242WAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBR INC 475 has no effect on the direction of Estee Lauder i.e., Estee Lauder and 48242WAC0 go up and down completely randomly.
Pair Corralation between Estee Lauder and 48242WAC0
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to under-perform the 48242WAC0. In addition to that, Estee Lauder is 3.98 times more volatile than KBR INC 475. It trades about -0.11 of its total potential returns per unit of risk. KBR INC 475 is currently generating about -0.23 per unit of volatility. If you would invest 9,525 in KBR INC 475 on November 28, 2024 and sell it today you would lose (337.00) from holding KBR INC 475 or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Estee Lauder Companies vs. KBR INC 475
Performance |
| Timeline |
| Estee Lauder Companies |
| KBR INC 475 |
Estee Lauder and 48242WAC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and 48242WAC0
The main advantage of trading using opposite Estee Lauder and 48242WAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder position performs unexpectedly, 48242WAC0 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 48242WAC0 will offset losses from the drop in 48242WAC0's long position.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty Inc |
| 48242WAC0 vs. AEP TEX INC | 48242WAC0 vs. iShares Global Consumer | 48242WAC0 vs. GE Aerospace | 48242WAC0 vs. The Coca Cola |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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