Correlation Between Unilever PLC and Kimberly Clark
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By analyzing existing cross correlation between Unilever PLC and Kimberly Clark de Mxico, you can compare the effects of market volatilities on Unilever PLC and Kimberly Clark 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 Unilever PLC with a short position of Kimberly Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unilever PLC and Kimberly Clark.
Diversification Opportunities for Unilever PLC and Kimberly Clark
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Unilever and Kimberly is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Unilever PLC and Kimberly Clark de Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimberly Clark de and Unilever PLC 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 Unilever PLC are associated (or correlated) with Kimberly Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimberly Clark de has no effect on the direction of Unilever PLC i.e., Unilever PLC and Kimberly Clark go up and down completely randomly.
Pair Corralation between Unilever PLC and Kimberly Clark
Assuming the 90 days trading horizon Unilever PLC is expected to generate 1.15 times more return on investment than Kimberly Clark. However, Unilever PLC is 1.15 times more volatile than Kimberly Clark de Mxico. It trades about 0.09 of its potential returns per unit of risk. Kimberly Clark de Mxico is currently generating about -0.09 per unit of risk. If you would invest 94,328 in Unilever PLC on August 30, 2024 and sell it today you would earn a total of 17,672 from holding Unilever PLC or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unilever PLC vs. Kimberly Clark de Mxico
Performance |
| Timeline |
| Unilever PLC |
| Kimberly Clark de |
Unilever PLC and Kimberly Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unilever PLC and Kimberly Clark
The main advantage of trading using opposite Unilever PLC and Kimberly Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unilever PLC position performs unexpectedly, Kimberly Clark 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 Kimberly Clark will offset losses from the drop in Kimberly Clark's long position.| Unilever PLC vs. Southwest Airlines | Unilever PLC vs. Hoteles City Express | Unilever PLC vs. Grupo Carso SAB | Unilever PLC vs. Grupo Hotelero Santa |
| Kimberly Clark vs. Gruma SAB de | Kimberly Clark vs. Alfa SAB de | Kimberly Clark vs. Grupo Financiero Inbursa | Kimberly Clark vs. Fomento Econmico Mexicano |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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