Correlation Between Tupperware Brands and Good Natured

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

By analyzing existing cross correlation between Tupperware Brands and Good Natured Products, you can compare the effects of market volatilities on Tupperware Brands and Good Natured 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 Tupperware Brands with a short position of Good Natured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tupperware Brands and Good Natured.

Diversification Opportunities for Tupperware Brands and Good Natured

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Correlation Coefficient

Tupperware Brands  Good Natured

Pay attention - limited upside

The 3 months correlation between Tupperware and Good is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Good Natured Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Natured Products and Tupperware 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 Tupperware Brands are associated (or correlated) with Good Natured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Natured Products has no effect on the direction of Tupperware Brands i.e., Tupperware Brands and Good Natured go up and down completely randomly.

Pair Corralation between Tupperware Brands and Good Natured

Considering the 90-day investment horizon Tupperware Brands is expected to generate 0.89 times more return on investment than Good Natured. However, Tupperware Brands is 1.12 times less risky than Good Natured. It trades about 0.01 of its potential returns per unit of risk. Good Natured Products is currently generating about 0.01 per unit of risk. If you would invest  80.00  in Tupperware Brands on October 22, 2024 and sell it today you would lose (74.00) from holding Tupperware Brands or give up 92.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	86.52%
Values	Daily Returns

Tupperware Brands  vs.  Good Natured Products

Tupperware Brands

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Tupperware Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tupperware Brands is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Good Natured Products

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Good Natured Products has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly uncertain basic indicators, Good Natured reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tupperware Brands and Good Natured

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

The idea behind Tupperware Brands and Good Natured Products 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 CEOs Directory module to screen CEOs from public companies around the world.