Correlation Between Estee Lauder and CCA Industries
Can any of the company-specific risk be diversified away by investing in both Estee Lauder and CCA Industries 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 Estee Lauder and CCA Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estee Lauder Companies and CCA Industries, you can compare the effects of market volatilities on Estee Lauder and CCA Industries 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 Estee Lauder with a short position of CCA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and CCA Industries.
Diversification Opportunities for Estee Lauder and CCA Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Estee and CCA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and CCA Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCA Industries and Estee Lauder 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 Estee Lauder Companies are associated (or correlated) with CCA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCA Industries has no effect on the direction of Estee Lauder i.e., Estee Lauder and CCA Industries go up and down completely randomly.
Pair Corralation between Estee Lauder and CCA Industries
If you would invest (100.00) in CCA Industries on January 24, 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 |
Estee Lauder Companies vs. CCA Industries
Performance |
| Timeline |
| Estee Lauder Companies |
| CCA Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Estee Lauder and CCA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and CCA Industries
The main advantage of trading using opposite Estee Lauder and CCA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder position performs unexpectedly, CCA Industries 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 CCA Industries will offset losses from the drop in CCA Industries' long position.| Estee Lauder vs. Procter Gamble | Estee Lauder vs. Colgate Palmolive | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. European Wax Center |
| CCA Industries vs. Logan Ridge Finance | CCA Industries vs. Cumberland Pharmaceuticals | CCA Industries vs. BBB Foods | CCA Industries vs. Coupang LLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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