Correlation Between Leslies and Olaplex Holdings
Can any of the company-specific risk be diversified away by investing in both Leslies and Olaplex Holdings 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 Leslies and Olaplex Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leslies and Olaplex Holdings, you can compare the effects of market volatilities on Leslies and Olaplex Holdings 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 Leslies with a short position of Olaplex Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leslies and Olaplex Holdings.
Diversification Opportunities for Leslies and Olaplex Holdings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leslies and Olaplex is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Leslies and Olaplex Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olaplex Holdings and Leslies 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 Leslies are associated (or correlated) with Olaplex Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olaplex Holdings has no effect on the direction of Leslies i.e., Leslies and Olaplex Holdings go up and down completely randomly.
Pair Corralation between Leslies and Olaplex Holdings
Given the investment horizon of 90 days Leslies is expected to under-perform the Olaplex Holdings. In addition to that, Leslies is 1.2 times more volatile than Olaplex Holdings. It trades about -0.04 of its total potential returns per unit of risk. Olaplex Holdings is currently generating about 0.0 per unit of volatility. If you would invest 218.00 in Olaplex Holdings on November 9, 2024 and sell it today you would lose (65.00) from holding Olaplex Holdings or give up 29.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leslies vs. Olaplex Holdings
Performance |
| Timeline |
| Leslies |
| Olaplex Holdings |
Leslies and Olaplex Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leslies and Olaplex Holdings
The main advantage of trading using opposite Leslies and Olaplex Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leslies position performs unexpectedly, Olaplex Holdings 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 Olaplex Holdings will offset losses from the drop in Olaplex Holdings' long position.| Leslies vs. Sally Beauty Holdings | Leslies vs. ODP Corp | Leslies vs. 1 800 FLOWERSCOM | Leslies vs. Caseys General Stores |
| Olaplex Holdings vs. 1 800 FLOWERSCOM | Olaplex Holdings vs. National Vision Holdings | Olaplex Holdings vs. Leslies | Olaplex Holdings vs. ODP Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |