Correlation Between Edgewell Personal and ALTICE

Can any of the company-specific risk be diversified away by investing in both Edgewell Personal and ALTICE 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 Edgewell Personal and ALTICE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Edgewell Personal Care and ALTICE FRANCE S, you can compare the effects of market volatilities on Edgewell Personal and ALTICE 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 Edgewell Personal with a short position of ALTICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewell Personal and ALTICE.

Diversification Opportunities for Edgewell Personal and ALTICE

-0.4

Correlation Coefficient

Edgewell Personal  ALTICE

Very good diversification

The 3 months correlation between Edgewell and ALTICE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Edgewell Personal Care and ALTICE FRANCE S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTICE FRANCE S and Edgewell Personal 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 Edgewell Personal Care are associated (or correlated) with ALTICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTICE FRANCE S has no effect on the direction of Edgewell Personal i.e., Edgewell Personal and ALTICE go up and down completely randomly.

Pair Corralation between Edgewell Personal and ALTICE

Considering the 90-day investment horizon Edgewell Personal Care is expected to generate 0.71 times more return on investment than ALTICE. However, Edgewell Personal Care is 1.41 times less risky than ALTICE. It trades about -0.12 of its potential returns per unit of risk. ALTICE FRANCE S is currently generating about -0.15 per unit of risk. If you would invest  3,414  in Edgewell Personal Care on December 25, 2024 and sell it today you would lose (450.00) from holding Edgewell Personal Care or give up 13.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	45.76%
Values	Daily Returns

Edgewell Personal Care  vs.  ALTICE FRANCE S

Edgewell Personal Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edgewell Personal Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ALTICE FRANCE S

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALTICE FRANCE S has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for ALTICE FRANCE S investors.

Pair Trading with Edgewell Personal and ALTICE

The main advantage of trading using opposite Edgewell Personal and ALTICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewell Personal position performs unexpectedly, ALTICE 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 ALTICE will offset losses from the drop in ALTICE's long position.

The idea behind Edgewell Personal Care and ALTICE FRANCE S pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.