Correlation Between Energizer Holdings and Waldencast Acquisition
Can any of the company-specific risk be diversified away by investing in both Energizer Holdings and Waldencast Acquisition 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 Energizer Holdings and Waldencast Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energizer Holdings and Waldencast Acquisition Corp, you can compare the effects of market volatilities on Energizer Holdings and Waldencast Acquisition 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 Energizer Holdings with a short position of Waldencast Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energizer Holdings and Waldencast Acquisition.
Diversification Opportunities for Energizer Holdings and Waldencast Acquisition
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Energizer and Waldencast is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Energizer Holdings and Waldencast Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waldencast Acquisition and Energizer Holdings 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 Energizer Holdings are associated (or correlated) with Waldencast Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waldencast Acquisition has no effect on the direction of Energizer Holdings i.e., Energizer Holdings and Waldencast Acquisition go up and down completely randomly.
Pair Corralation between Energizer Holdings and Waldencast Acquisition
Considering the 90-day investment horizon Energizer Holdings is expected to generate 0.52 times more return on investment than Waldencast Acquisition. However, Energizer Holdings is 1.91 times less risky than Waldencast Acquisition. It trades about 0.4 of its potential returns per unit of risk. Waldencast Acquisition Corp is currently generating about -0.15 per unit of risk. If you would invest 3,277 in Energizer Holdings on August 28, 2024 and sell it today you would earn a total of 600.00 from holding Energizer Holdings or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energizer Holdings vs. Waldencast Acquisition Corp
Performance |
| Timeline |
| Energizer Holdings |
| Waldencast Acquisition |
Energizer Holdings and Waldencast Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energizer Holdings and Waldencast Acquisition
The main advantage of trading using opposite Energizer Holdings and Waldencast Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energizer Holdings position performs unexpectedly, Waldencast Acquisition 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 Waldencast Acquisition will offset losses from the drop in Waldencast Acquisition's long position.| Energizer Holdings vs. Acuity Brands | Energizer Holdings vs. Espey Mfg Electronics | Energizer Holdings vs. Preformed Line Products | Energizer Holdings vs. Kimball Electronics |
| Waldencast Acquisition vs. Where Food Comes | Waldencast Acquisition vs. VTEX | Waldencast Acquisition vs. Vertex | Waldencast Acquisition vs. BASE Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |