Correlation Between Edgewell Personal and UNITED
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By analyzing existing cross correlation between Edgewell Personal Care and UNITED TECHNOLOGIES P, you can compare the effects of market volatilities on Edgewell Personal and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewell Personal and UNITED.
Diversification Opportunities for Edgewell Personal and UNITED
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Edgewell and UNITED is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Edgewell Personal Care and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED TECHNOLOGIES has no effect on the direction of Edgewell Personal i.e., Edgewell Personal and UNITED go up and down completely randomly.
Pair Corralation between Edgewell Personal and UNITED
Considering the 90-day investment horizon Edgewell Personal Care is expected to generate 0.72 times more return on investment than UNITED. However, Edgewell Personal Care is 1.39 times less risky than UNITED. It trades about -0.02 of its potential returns per unit of risk. UNITED TECHNOLOGIES P is currently generating about -0.02 per unit of risk. If you would invest 3,988 in Edgewell Personal Care on October 11, 2024 and sell it today you would lose (765.00) from holding Edgewell Personal Care or give up 19.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 48.59% |
Values | Daily Returns |
Edgewell Personal Care vs. UNITED TECHNOLOGIES P
Performance |
Timeline |
Edgewell Personal Care |
UNITED TECHNOLOGIES |
Edgewell Personal and UNITED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Edgewell Personal and UNITED
The main advantage of trading using opposite Edgewell Personal and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewell Personal position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.Edgewell Personal vs. Mannatech Incorporated | Edgewell Personal vs. Inter Parfums | Edgewell Personal vs. Nu Skin Enterprises | Edgewell Personal vs. Helen of Troy |
UNITED vs. National CineMedia | UNITED vs. Freedom Internet Group | UNITED vs. Herc Holdings | UNITED vs. Vestis |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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