Correlation Between European Wax and Stephan
Can any of the company-specific risk be diversified away by investing in both European Wax and Stephan 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 European Wax and Stephan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between European Wax Center and The Stephan Co, you can compare the effects of market volatilities on European Wax and Stephan 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 European Wax with a short position of Stephan. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Wax and Stephan.
Diversification Opportunities for European Wax and Stephan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between European and Stephan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding European Wax Center and The Stephan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Stephan and European Wax 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 European Wax Center are associated (or correlated) with Stephan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Stephan has no effect on the direction of European Wax i.e., European Wax and Stephan go up and down completely randomly.
Pair Corralation between European Wax and Stephan
If you would invest 636.00 in European Wax Center on November 18, 2024 and sell it today you would earn a total of 99.00 from holding European Wax Center or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
European Wax Center vs. The Stephan Co
Performance |
| Timeline |
| European Wax Center |
| The Stephan |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
European Wax and Stephan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Wax and Stephan
The main advantage of trading using opposite European Wax and Stephan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Wax position performs unexpectedly, Stephan 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 Stephan will offset losses from the drop in Stephan's long position.| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
| Stephan vs. LOreal Co ADR | Stephan vs. Unilever PLC | Stephan vs. Estee Lauder Companies | Stephan vs. Church Dwight |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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