Correlation Between Spectrum Brands and Golden Energy
Can any of the company-specific risk be diversified away by investing in both Spectrum Brands and Golden Energy 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 Spectrum Brands and Golden Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Brands Holdings and Golden Energy Offshore, you can compare the effects of market volatilities on Spectrum Brands and Golden Energy 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 Spectrum Brands with a short position of Golden Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Golden Energy.
Diversification Opportunities for Spectrum Brands and Golden Energy
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spectrum and Golden is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Golden Energy Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Energy Offshore and Spectrum 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 Spectrum Brands Holdings are associated (or correlated) with Golden Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Energy Offshore has no effect on the direction of Spectrum Brands i.e., Spectrum Brands and Golden Energy go up and down completely randomly.
Pair Corralation between Spectrum Brands and Golden Energy
If you would invest 8,475 in Spectrum Brands Holdings on October 24, 2024 and sell it today you would earn a total of 78.00 from holding Spectrum Brands Holdings or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Spectrum Brands Holdings vs. Golden Energy Offshore
Performance |
| Timeline |
| Spectrum Brands Holdings |
| Golden Energy Offshore |
Spectrum Brands and Golden Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Brands and Golden Energy
The main advantage of trading using opposite Spectrum Brands and Golden Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands position performs unexpectedly, Golden Energy 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 Golden Energy will offset losses from the drop in Golden Energy's long position.| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
| Golden Energy vs. Westrock Coffee | Golden Energy vs. Sensient Technologies | Golden Energy vs. CVR Partners LP | Golden Energy vs. Ispire Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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