Correlation Between CardieX and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both CardieX and Unilever PLC 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 CardieX and Unilever PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CardieX Limited and Unilever PLC, you can compare the effects of market volatilities on CardieX and Unilever PLC 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 CardieX with a short position of Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CardieX and Unilever PLC.
Diversification Opportunities for CardieX and Unilever PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CardieX and Unilever is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CardieX Limited and Unilever PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC and CardieX 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 CardieX Limited are associated (or correlated) with Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC has no effect on the direction of CardieX i.e., CardieX and Unilever PLC go up and down completely randomly.
Pair Corralation between CardieX and Unilever PLC
If you would invest 4,511 in Unilever PLC on January 25, 2024 and sell it today you would earn a total of 345.00 from holding Unilever PLC or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CardieX Limited vs. Unilever PLC
Performance |
| Timeline |
| CardieX Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Unilever PLC |
CardieX and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CardieX and Unilever PLC
The main advantage of trading using opposite CardieX and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CardieX position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC's long position.| CardieX vs. Arrow Electronics | CardieX vs. Boyd Gaming | CardieX vs. Empire Global Gaming | CardieX vs. Valneva SE ADR |
| Unilever PLC vs. LOreal Co ADR | Unilever PLC vs. Unilever PLC ADR | Unilever PLC vs. Kimberly Clark | Unilever PLC vs. The Clorox |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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