Correlation Between Fluent and Church Dwight
Can any of the company-specific risk be diversified away by investing in both Fluent and Church Dwight 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 Fluent and Church Dwight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Church Dwight, you can compare the effects of market volatilities on Fluent and Church Dwight 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 Fluent with a short position of Church Dwight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Church Dwight.
Diversification Opportunities for Fluent and Church Dwight
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fluent and Church is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Church Dwight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Dwight and Fluent 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 Fluent Inc are associated (or correlated) with Church Dwight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Dwight has no effect on the direction of Fluent i.e., Fluent and Church Dwight go up and down completely randomly.
Pair Corralation between Fluent and Church Dwight
Given the investment horizon of 90 days Fluent is expected to generate 3.63 times less return on investment than Church Dwight. In addition to that, Fluent is 4.22 times more volatile than Church Dwight. It trades about 0.0 of its total potential returns per unit of risk. Church Dwight is currently generating about 0.05 per unit of volatility. If you would invest 9,228 in Church Dwight on August 31, 2024 and sell it today you would earn a total of 1,785 from holding Church Dwight or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. Church Dwight
Performance |
| Timeline |
| Fluent Inc |
| Church Dwight |
Fluent and Church Dwight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Church Dwight
The main advantage of trading using opposite Fluent and Church Dwight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Church Dwight 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 Church Dwight will offset losses from the drop in Church Dwight's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Church Dwight vs. Kimberly Clark | Church Dwight vs. Colgate Palmolive | Church Dwight vs. Unilever PLC ADR | Church Dwight vs. Procter Gamble |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |