Correlation Between NYSE Composite and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Edgewell Personal 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 NYSE Composite and Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Edgewell Personal Care, you can compare the effects of market volatilities on NYSE Composite and Edgewell Personal 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 NYSE Composite with a short position of Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Edgewell Personal.
Diversification Opportunities for NYSE Composite and Edgewell Personal
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Edgewell is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care and NYSE Composite 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 NYSE Composite are associated (or correlated) with Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of NYSE Composite i.e., NYSE Composite and Edgewell Personal go up and down completely randomly.
Pair Corralation between NYSE Composite and Edgewell Personal
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.29 times less return on investment than Edgewell Personal. But when comparing it to its historical volatility, NYSE Composite is 2.19 times less risky than Edgewell Personal. It trades about 0.24 of its potential returns per unit of risk. Edgewell Personal Care is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,523 in Edgewell Personal Care on August 28, 2024 and sell it today you would earn a total of 151.00 from holding Edgewell Personal Care or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Edgewell Personal Care
Performance |
| Timeline |
NYSE Composite and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Edgewell Personal Care
Pair trading matchups for Edgewell Personal
Pair Trading with NYSE Composite and Edgewell Personal
The main advantage of trading using opposite NYSE Composite and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Edgewell Personal vs. Mannatech Incorporated | Edgewell Personal vs. Inter Parfums | Edgewell Personal vs. Nu Skin Enterprises | Edgewell Personal vs. Helen of Troy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |