Correlation Between Haleon Plc and PetIQ
Can any of the company-specific risk be diversified away by investing in both Haleon Plc and PetIQ 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 Haleon Plc and PetIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and PetIQ Inc, you can compare the effects of market volatilities on Haleon Plc and PetIQ 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 Haleon Plc with a short position of PetIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and PetIQ.
Diversification Opportunities for Haleon Plc and PetIQ
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haleon and PetIQ is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and PetIQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetIQ Inc and Haleon Plc 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 Haleon plc are associated (or correlated) with PetIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetIQ Inc has no effect on the direction of Haleon Plc i.e., Haleon Plc and PetIQ go up and down completely randomly.
Pair Corralation between Haleon Plc and PetIQ
Considering the 90-day investment horizon Haleon Plc is expected to generate 4.27 times less return on investment than PetIQ. But when comparing it to its historical volatility, Haleon plc is 2.51 times less risky than PetIQ. It trades about 0.05 of its potential returns per unit of risk. PetIQ Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,151 in PetIQ Inc on August 27, 2024 and sell it today you would earn a total of 1,947 from holding PetIQ Inc or generate 169.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.77% |
| Values | Daily Returns |
Haleon plc vs. PetIQ Inc
Performance |
| Timeline |
| Haleon plc |
| PetIQ Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Haleon Plc and PetIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and PetIQ
The main advantage of trading using opposite Haleon Plc and PetIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc position performs unexpectedly, PetIQ 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 PetIQ will offset losses from the drop in PetIQ's long position.| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
| PetIQ vs. Prestige Brand Holdings | PetIQ vs. Collegium Pharmaceutical | PetIQ vs. Regencell Bioscience Holdings | PetIQ vs. Pacira BioSciences, |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |