Correlation Between Whirlpool and Schulz SA
Can any of the company-specific risk be diversified away by investing in both Whirlpool and Schulz SA 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 Whirlpool and Schulz SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whirlpool SA and Schulz SA, you can compare the effects of market volatilities on Whirlpool and Schulz SA 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 Whirlpool with a short position of Schulz SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Schulz SA.
Diversification Opportunities for Whirlpool and Schulz SA
Weak diversification
The 3 months correlation between Whirlpool and Schulz is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool SA and Schulz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schulz SA and Whirlpool 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 Whirlpool SA are associated (or correlated) with Schulz SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schulz SA has no effect on the direction of Whirlpool i.e., Whirlpool and Schulz SA go up and down completely randomly.
Pair Corralation between Whirlpool and Schulz SA
Assuming the 90 days trading horizon Whirlpool SA is expected to generate 1.74 times more return on investment than Schulz SA. However, Whirlpool is 1.74 times more volatile than Schulz SA. It trades about 0.0 of its potential returns per unit of risk. Schulz SA is currently generating about -0.01 per unit of risk. If you would invest 436.00 in Whirlpool SA on September 3, 2024 and sell it today you would lose (20.00) from holding Whirlpool SA or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whirlpool SA vs. Schulz SA
Performance |
| Timeline |
| Whirlpool SA |
| Schulz SA |
Whirlpool and Schulz SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and Schulz SA
The main advantage of trading using opposite Whirlpool and Schulz SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, Schulz SA 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 Schulz SA will offset losses from the drop in Schulz SA's long position.| Whirlpool vs. Whirlpool SA | Whirlpool vs. Marcopolo SA | Whirlpool vs. Indstrias Romi SA | Whirlpool vs. Randon SA Implementos |
| Schulz SA vs. METISA Metalrgica Timboense | Schulz SA vs. Randon SA Implementos | Schulz SA vs. Fundo Investimento Imobiliario | Schulz SA vs. Fras le 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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