Correlation Between Kate Spade and Estee Lauder
Can any of the company-specific risk be diversified away by investing in both Kate Spade 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 Kate Spade and Estee Lauder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kate Spade and Estee Lauder Companies, you can compare the effects of market volatilities on Kate Spade 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 Kate Spade with a short position of Estee Lauder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kate Spade and Estee Lauder.
Diversification Opportunities for Kate Spade and Estee Lauder
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kate and Estee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kate Spade 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 Kate Spade 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 Kate Spade 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 Kate Spade i.e., Kate Spade and Estee Lauder go up and down completely randomly.
Pair Corralation between Kate Spade and Estee Lauder
If you would invest 14,504 in Estee Lauder Companies on January 27, 2024 and sell it today you would lose (5.00) from holding Estee Lauder Companies or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kate Spade vs. Estee Lauder Companies
Performance |
| Timeline |
| Kate Spade |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Estee Lauder Companies |
Kate Spade and Estee Lauder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kate Spade and Estee Lauder
The main advantage of trading using opposite Kate Spade and Estee Lauder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kate Spade 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.| Kate Spade vs. Arch Capital Group | Kate Spade vs. Viemed Healthcare | Kate Spade vs. Microbot Medical | Kate Spade vs. Siriuspoint |
| Estee Lauder vs. Seneca Foods Corp | Estee Lauder vs. Central Garden Pet | Estee Lauder vs. Central Garden Pet | Estee Lauder vs. Associated British 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |