Correlation Between Newell Brands and MAHLE Metal

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Newell Brands and MAHLE Metal 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 Newell Brands and MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newell Brands and MAHLE Metal Leve, you can compare the effects of market volatilities on Newell Brands and MAHLE Metal 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 Newell Brands with a short position of MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newell Brands and MAHLE Metal.

Diversification Opportunities for Newell Brands and MAHLE Metal

NewellMAHLEDiversified AwayNewellMAHLEDiversified Away100%
-0.79
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Newell and MAHLE is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve and Newell Brands 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 Newell Brands are associated (or correlated) with MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of Newell Brands i.e., Newell Brands and MAHLE Metal go up and down completely randomly.

Pair Corralation between Newell Brands and MAHLE Metal

Assuming the 90 days trading horizon Newell Brands is expected to generate 2.39 times more return on investment than MAHLE Metal. However, Newell Brands is 2.39 times more volatile than MAHLE Metal Leve. It trades about 0.16 of its potential returns per unit of risk. MAHLE Metal Leve is currently generating about -0.08 per unit of risk. If you would invest  4,409  in Newell Brands on October 20, 2024 and sell it today you would earn a total of  1,696  from holding Newell Brands or generate 38.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Newell Brands  vs.  MAHLE Metal Leve

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0204060
JavaScript chart by amCharts 3.21.15N1WL34 LEVE3
       Timeline  
Newell Brands 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Newell Brands are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Newell Brands sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan455055606570
MAHLE Metal Leve 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MAHLE Metal Leve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2626.52727.52828.52929.53030.5

Newell Brands and MAHLE Metal Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.99-8.98-5.97-2.960.05013.256.569.8713.18 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15N1WL34 LEVE3
       Returns  

Pair Trading with Newell Brands and MAHLE Metal

The main advantage of trading using opposite Newell Brands and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.
The idea behind Newell Brands and MAHLE Metal Leve 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.
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Correlations
Find global opportunities by holding instruments from different markets
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing