Correlation Between NEWELL RUBBERMAID and Hawesko Holding

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

By analyzing existing cross correlation between NEWELL RUBBERMAID and Hawesko Holding AG, you can compare the effects of market volatilities on NEWELL RUBBERMAID and Hawesko Holding 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 RUBBERMAID with a short position of Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and Hawesko Holding.

Diversification Opportunities for NEWELL RUBBERMAID and Hawesko Holding

0.43

Correlation Coefficient

NEWELL RUBBERMAID  Hawesko Holding

Very weak diversification

The 3 months correlation between NEWELL and Hawesko is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG and NEWELL RUBBERMAID 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 RUBBERMAID are associated (or correlated) with Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and Hawesko Holding go up and down completely randomly.

Pair Corralation between NEWELL RUBBERMAID and Hawesko Holding

Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to under-perform the Hawesko Holding. In addition to that, NEWELL RUBBERMAID is 2.28 times more volatile than Hawesko Holding AG. It trades about -0.17 of its total potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.08 per unit of volatility. If you would invest  2,680  in Hawesko Holding AG on December 20, 2024 and sell it today you would lose (230.00) from holding Hawesko Holding AG or give up 8.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

NEWELL RUBBERMAID   vs.  Hawesko Holding AG

NEWELL RUBBERMAID

Risk-Adjusted Performance

Very Weak

Over the last 90 days NEWELL RUBBERMAID has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hawesko Holding AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hawesko Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with NEWELL RUBBERMAID and Hawesko Holding

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

The idea behind NEWELL RUBBERMAID and Hawesko Holding AG 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.