Correlation Between NEWELL RUBBERMAID and KAUFMAN ET
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID and KAUFMAN ET 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 NEWELL RUBBERMAID and KAUFMAN ET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and KAUFMAN ET BROAD, you can compare the effects of market volatilities on NEWELL RUBBERMAID and KAUFMAN ET 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 NEWELL RUBBERMAID with a short position of KAUFMAN ET. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and KAUFMAN ET.
Diversification Opportunities for NEWELL RUBBERMAID and KAUFMAN ET
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEWELL and KAUFMAN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and KAUFMAN ET BROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAUFMAN ET BROAD and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID are associated (or correlated) with KAUFMAN ET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAUFMAN ET BROAD has no effect on the direction of NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and KAUFMAN ET go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and KAUFMAN ET
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to under-perform the KAUFMAN ET. In addition to that, NEWELL RUBBERMAID is 3.39 times more volatile than KAUFMAN ET BROAD. It trades about -0.32 of its total potential returns per unit of risk. KAUFMAN ET BROAD is currently generating about 0.19 per unit of volatility. If you would invest 3,100 in KAUFMAN ET BROAD on November 27, 2024 and sell it today you would earn a total of 210.00 from holding KAUFMAN ET BROAD or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. KAUFMAN ET BROAD
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| KAUFMAN ET BROAD |
NEWELL RUBBERMAID and KAUFMAN ET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and KAUFMAN ET
The main advantage of trading using opposite NEWELL RUBBERMAID and KAUFMAN ET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID position performs unexpectedly, KAUFMAN ET 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 KAUFMAN ET will offset losses from the drop in KAUFMAN ET's long position.| NEWELL RUBBERMAID vs. Zijin Mining Group | NEWELL RUBBERMAID vs. ALEFARM BREWING DK 05 | NEWELL RUBBERMAID vs. North American Construction | NEWELL RUBBERMAID vs. Stag Industrial |
| KAUFMAN ET vs. PKSHA TECHNOLOGY INC | KAUFMAN ET vs. PATTIES FOODS | KAUFMAN ET vs. ASM Pacific Technology | KAUFMAN ET vs. Easy Software AG |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |