Correlation Between World Houseware and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both World Houseware and Unilever PLC 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 World Houseware and Unilever PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Houseware Limited and Unilever PLC ADR, you can compare the effects of market volatilities on World Houseware and Unilever PLC 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 World Houseware with a short position of Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Houseware and Unilever PLC.
Diversification Opportunities for World Houseware and Unilever PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between World and Unilever is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding World Houseware Limited and Unilever PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC ADR and World Houseware 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 World Houseware Limited are associated (or correlated) with Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC ADR has no effect on the direction of World Houseware i.e., World Houseware and Unilever PLC go up and down completely randomly.
Pair Corralation between World Houseware and Unilever PLC
If you would invest 5.00 in World Houseware Limited on September 2, 2024 and sell it today you would earn a total of 0.00 from holding World Houseware Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
World Houseware Limited vs. Unilever PLC ADR
Performance |
| Timeline |
| World Houseware |
| Unilever PLC ADR |
World Houseware and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Houseware and Unilever PLC
The main advantage of trading using opposite World Houseware and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Houseware position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC's long position.| World Houseware vs. Trane Technologies plc | World Houseware vs. Carrier Global Corp | World Houseware vs. Johnson Controls International | World Houseware vs. Compagnie de Saint Gobain |
| Unilever PLC vs. The Clorox | Unilever PLC vs. Colgate Palmolive | Unilever PLC vs. Procter Gamble | Unilever PLC vs. Church Dwight |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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