Correlation Between Mid Atlantic and Estee Lauder
Can any of the company-specific risk be diversified away by investing in both Mid Atlantic 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 Mid Atlantic and Estee Lauder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Atlantic Home Health and Estee Lauder Companies, you can compare the effects of market volatilities on Mid Atlantic 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 Mid Atlantic with a short position of Estee Lauder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Atlantic and Estee Lauder.
Diversification Opportunities for Mid Atlantic and Estee Lauder
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Estee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Atlantic Home Health 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 Mid Atlantic 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 Mid Atlantic Home Health 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 Mid Atlantic i.e., Mid Atlantic and Estee Lauder go up and down completely randomly.
Pair Corralation between Mid Atlantic and Estee Lauder
If you would invest 0.01 in Mid Atlantic Home Health on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Mid Atlantic Home Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Atlantic Home Health vs. Estee Lauder Companies
Performance |
| Timeline |
| Mid Atlantic Home |
| Estee Lauder Companies |
Mid Atlantic and Estee Lauder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Atlantic and Estee Lauder
The main advantage of trading using opposite Mid Atlantic and Estee Lauder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Atlantic 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.| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic vs. Concord Medical Services |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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