Correlation Between CCA Industries and Estee Lauder
Can any of the company-specific risk be diversified away by investing in both CCA Industries and Estee Lauder 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 CCA Industries and Estee Lauder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCA Industries and Estee Lauder Companies, you can compare the effects of market volatilities on CCA Industries and Estee Lauder 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 CCA Industries with a short position of Estee Lauder. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCA Industries and Estee Lauder.
Diversification Opportunities for CCA Industries and Estee Lauder
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCA and Estee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CCA Industries and Estee Lauder Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estee Lauder Companies and CCA Industries 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 CCA Industries are associated (or correlated) with Estee Lauder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estee Lauder Companies has no effect on the direction of CCA Industries i.e., CCA Industries and Estee Lauder go up and down completely randomly.
Pair Corralation between CCA Industries and Estee Lauder
If you would invest (100.00) in CCA Industries on January 20, 2024 and sell it today you would earn a total of 100.00 from holding CCA Industries or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CCA Industries vs. Estee Lauder Companies
Performance |
| Timeline |
| CCA Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Estee Lauder Companies |
CCA Industries and Estee Lauder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCA Industries and Estee Lauder
The main advantage of trading using opposite CCA Industries and Estee Lauder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCA Industries position performs unexpectedly, Estee Lauder 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 Estee Lauder will offset losses from the drop in Estee Lauder's long position.| CCA Industries vs. Axalta Coating Systems | CCA Industries vs. Hudson Technologies | CCA Industries vs. Ecovyst | CCA Industries vs. Hooker Furniture |
| Estee Lauder vs. Seneca Foods Corp | Estee Lauder vs. Central Garden Pet | Estee Lauder vs. Central Garden Pet | Estee Lauder vs. Lifeway Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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