Correlation Between Revlon and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Revlon and Spectrum Brands 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 Revlon and Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revlon Inc and Spectrum Brands Holdings, you can compare the effects of market volatilities on Revlon and Spectrum Brands 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 Revlon with a short position of Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revlon and Spectrum Brands.
Diversification Opportunities for Revlon and Spectrum Brands
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Revlon and Spectrum is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Revlon Inc and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings and Revlon 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 Revlon Inc are associated (or correlated) with Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Revlon i.e., Revlon and Spectrum Brands go up and down completely randomly.
Pair Corralation between Revlon and Spectrum Brands
If you would invest 39.00 in Revlon Inc on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Revlon Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Revlon Inc vs. Spectrum Brands Holdings
Performance |
| Timeline |
| Revlon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Spectrum Brands Holdings |
Revlon and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revlon and Spectrum Brands
The main advantage of trading using opposite Revlon and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revlon position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.| Revlon vs. The Cheesecake Factory | Revlon vs. Kura Sushi USA | Revlon vs. Emerson Radio | Revlon vs. Dennys Corp |
| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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