Correlation Between NEWELL RUBBERMAID and MC Mining
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID and MC Mining 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 MC Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and MC Mining, you can compare the effects of market volatilities on NEWELL RUBBERMAID and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and MC Mining.
Diversification Opportunities for NEWELL RUBBERMAID and MC Mining
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between NEWELL and G1V is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and MC Mining go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and MC Mining
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 90.7 times less return on investment than MC Mining. But when comparing it to its historical volatility, NEWELL RUBBERMAID is 29.38 times less risky than MC Mining. It trades about 0.04 of its potential returns per unit of risk. MC Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6.70 in MC Mining on September 12, 2024 and sell it today you would lose (6.55) from holding MC Mining or give up 97.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. MC Mining
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| MC Mining |
NEWELL RUBBERMAID and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and MC Mining
The main advantage of trading using opposite NEWELL RUBBERMAID and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc |
| MC Mining vs. PennyMac Mortgage Investment | MC Mining vs. WT OFFSHORE | MC Mining vs. Postal Savings Bank | MC Mining vs. Gladstone Investment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |