Correlation Between Stephan and Church Dwight
Can any of the company-specific risk be diversified away by investing in both Stephan and Church Dwight 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 Stephan and Church Dwight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Stephan Co and Church Dwight, you can compare the effects of market volatilities on Stephan and Church Dwight 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 Stephan with a short position of Church Dwight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stephan and Church Dwight.
Diversification Opportunities for Stephan and Church Dwight
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stephan and Church is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding The Stephan Co and Church Dwight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Dwight and Stephan 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 The Stephan Co are associated (or correlated) with Church Dwight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Dwight has no effect on the direction of Stephan i.e., Stephan and Church Dwight go up and down completely randomly.
Pair Corralation between Stephan and Church Dwight
If you would invest 10,229 in Church Dwight on August 24, 2024 and sell it today you would earn a total of 1,073 from holding Church Dwight or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
The Stephan Co vs. Church Dwight
Performance |
| Timeline |
| The Stephan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Church Dwight |
Stephan and Church Dwight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stephan and Church Dwight
The main advantage of trading using opposite Stephan and Church Dwight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stephan position performs unexpectedly, Church Dwight 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 Church Dwight will offset losses from the drop in Church Dwight's long position.| Stephan vs. LOreal Co ADR | Stephan vs. Unilever PLC | Stephan vs. Estee Lauder Companies | Stephan vs. Church Dwight |
| Church Dwight vs. Eshallgo Class A | Church Dwight vs. Amtech Systems | Church Dwight vs. Gold Fields Ltd | Church Dwight vs. Aegean Airlines SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |