Correlation Between Lifetime Brands and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Lifetime Brands and Whirlpool 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 Lifetime Brands and Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifetime Brands and Whirlpool, you can compare the effects of market volatilities on Lifetime Brands and Whirlpool 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 Lifetime Brands with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifetime Brands and Whirlpool.
Diversification Opportunities for Lifetime Brands and Whirlpool
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifetime and Whirlpool is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lifetime Brands and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool and Lifetime Brands 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 Lifetime Brands are associated (or correlated) with Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of Lifetime Brands i.e., Lifetime Brands and Whirlpool go up and down completely randomly.
Pair Corralation between Lifetime Brands and Whirlpool
Given the investment horizon of 90 days Lifetime Brands is expected to under-perform the Whirlpool. In addition to that, Lifetime Brands is 1.11 times more volatile than Whirlpool. It trades about -0.02 of its total potential returns per unit of risk. Whirlpool is currently generating about 0.22 per unit of volatility. If you would invest 9,776 in Whirlpool on August 24, 2024 and sell it today you would earn a total of 1,428 from holding Whirlpool or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifetime Brands vs. Whirlpool
Performance |
| Timeline |
| Lifetime Brands |
| Whirlpool |
Lifetime Brands and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifetime Brands and Whirlpool
The main advantage of trading using opposite Lifetime Brands and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifetime Brands position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Lifetime Brands vs. Virco Manufacturing | Lifetime Brands vs. Energy Focu | Lifetime Brands vs. FGI Industries | Lifetime Brands vs. Hamilton Beach Brands |
| Whirlpool vs. Ethan Allen Interiors | Whirlpool vs. Mohawk Industries | Whirlpool vs. Tempur Sealy International | Whirlpool vs. MillerKnoll |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |