Correlation Between Joint Stock and Estee Lauder
Can any of the company-specific risk be diversified away by investing in both Joint Stock and Estee Lauder 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 Joint Stock and Estee Lauder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and Estee Lauder Companies, you can compare the effects of market volatilities on Joint Stock and Estee Lauder 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 Joint Stock with a short position of Estee Lauder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and Estee Lauder.
Diversification Opportunities for Joint Stock and Estee Lauder
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Joint and Estee is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and Estee Lauder Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estee Lauder Companies and Joint Stock 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 Joint Stock are associated (or correlated) with Estee Lauder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estee Lauder Companies has no effect on the direction of Joint Stock i.e., Joint Stock and Estee Lauder go up and down completely randomly.
Pair Corralation between Joint Stock and Estee Lauder
Given the investment horizon of 90 days Joint Stock is expected to generate 0.85 times more return on investment than Estee Lauder. However, Joint Stock is 1.18 times less risky than Estee Lauder. It trades about 0.02 of its potential returns per unit of risk. Estee Lauder Companies is currently generating about -0.07 per unit of risk. If you would invest 9,115 in Joint Stock on November 9, 2024 and sell it today you would earn a total of 685.00 from holding Joint Stock or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.25% |
| Values | Daily Returns |
Joint Stock vs. Estee Lauder Companies
Performance |
| Timeline |
| Joint Stock |
| Estee Lauder Companies |
Joint Stock and Estee Lauder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and Estee Lauder
The main advantage of trading using opposite Joint Stock and Estee Lauder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock position performs unexpectedly, Estee Lauder 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 Estee Lauder will offset losses from the drop in Estee Lauder's long position.| Joint Stock vs. Silicon Gaming | Joint Stock vs. Reservoir Media | Joint Stock vs. MobileSmith | Joint Stock vs. NETGEAR |
| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty 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 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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |