Correlation Between Whirlpool and Imperium Group

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

By analyzing existing cross correlation between Whirlpool and Imperium Group Global, you can compare the effects of market volatilities on Whirlpool and Imperium Group 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 Whirlpool with a short position of Imperium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Imperium Group.

Diversification Opportunities for Whirlpool and Imperium Group

0.43

Correlation Coefficient

Whirlpool  Imperium Group

Very weak diversification

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

Pair Corralation between Whirlpool and Imperium Group

Considering the 90-day investment horizon Whirlpool is expected to generate 0.4 times more return on investment than Imperium Group. However, Whirlpool is 2.5 times less risky than Imperium Group. It trades about -0.1 of its potential returns per unit of risk. Imperium Group Global is currently generating about -0.19 per unit of risk. If you would invest  11,190  in Whirlpool on December 29, 2024 and sell it today you would lose (2,239) from holding Whirlpool or give up 20.01% of portfolio value over 90 days.

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

Whirlpool  vs.  Imperium Group Global

Whirlpool

Risk-Adjusted Performance

Very Weak

Over the last 90 days Whirlpool has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Imperium Group Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imperium Group Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Whirlpool and Imperium Group

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

The idea behind Whirlpool and Imperium Group Global 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.