Correlation Between Whirlpool and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Whirlpool and Whirlpool 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 Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whirlpool SA and Whirlpool SA, you can compare the effects of market volatilities on Whirlpool and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Whirlpool.
Diversification Opportunities for Whirlpool and Whirlpool
Very poor diversification
The 3 months correlation between Whirlpool and Whirlpool is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool SA and Whirlpool SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool SA has no effect on the direction of Whirlpool i.e., Whirlpool and Whirlpool go up and down completely randomly.
Pair Corralation between Whirlpool and Whirlpool
Assuming the 90 days trading horizon Whirlpool SA is expected to generate 1.5 times more return on investment than Whirlpool. However, Whirlpool is 1.5 times more volatile than Whirlpool SA. It trades about 0.02 of its potential returns per unit of risk. Whirlpool SA is currently generating about 0.02 per unit of risk. If you would invest 403.00 in Whirlpool SA on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Whirlpool SA or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whirlpool SA vs. Whirlpool SA
Performance |
| Timeline |
| Whirlpool SA |
| Whirlpool SA |
Whirlpool and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and Whirlpool
The main advantage of trading using opposite Whirlpool and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Whirlpool vs. Whirlpool SA | Whirlpool vs. Marcopolo SA | Whirlpool vs. Indstrias Romi SA | Whirlpool vs. Randon SA Implementos |
| Whirlpool vs. Whirlpool SA | Whirlpool vs. Indstrias Romi SA | Whirlpool vs. Schulz SA | Whirlpool vs. Marcopolo 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |