Correlation Between Newell Brands and Fluent
Can any of the company-specific risk be diversified away by investing in both Newell Brands and Fluent 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 Brands and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newell Brands and Fluent Inc, you can compare the effects of market volatilities on Newell Brands and Fluent 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 Brands with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newell Brands and Fluent.
Diversification Opportunities for Newell Brands and Fluent
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newell and Fluent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Newell 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 Newell Brands are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Newell Brands i.e., Newell Brands and Fluent go up and down completely randomly.
Pair Corralation between Newell Brands and Fluent
Considering the 90-day investment horizon Newell Brands is expected to generate 0.91 times more return on investment than Fluent. However, Newell Brands is 1.1 times less risky than Fluent. It trades about 0.15 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.1 per unit of risk. If you would invest 763.00 in Newell Brands on August 28, 2024 and sell it today you would earn a total of 199.00 from holding Newell Brands or generate 26.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newell Brands vs. Fluent Inc
Performance |
| Timeline |
| Newell Brands |
| Fluent Inc |
Newell Brands and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newell Brands and Fluent
The main advantage of trading using opposite Newell Brands and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Newell Brands vs. The Clorox | Newell Brands vs. Colgate Palmolive | Newell Brands vs. Procter Gamble | Newell Brands vs. Unilever PLC ADR |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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