Correlation Between Kimberly Clark and Meta Platforms

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kimberly Clark and Meta Platforms 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 Kimberly Clark and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimberly Clark and Meta Platforms, you can compare the effects of market volatilities on Kimberly Clark and Meta Platforms 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 Kimberly Clark with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimberly Clark and Meta Platforms.

Diversification Opportunities for Kimberly Clark and Meta Platforms

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Kimberly and Meta is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kimberly-Clark and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Kimberly Clark 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 Kimberly Clark are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Kimberly Clark i.e., Kimberly Clark and Meta Platforms go up and down completely randomly.

Pair Corralation between Kimberly Clark and Meta Platforms

If you would invest  12,001  in Kimberly Clark on December 29, 2023 and sell it today you would earn a total of  726.00  from holding Kimberly Clark or generate 6.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Kimberly-Clark  vs.  Meta Platforms

 Performance 
       Timeline  
Kimberly-Clark 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kimberly Clark are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, Kimberly Clark is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Meta Platforms 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Meta Platforms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Meta Platforms is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Kimberly Clark and Meta Platforms Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kimberly Clark and Meta Platforms

The main advantage of trading using opposite Kimberly Clark and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimberly Clark position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.
The idea behind Kimberly Clark and Meta Platforms 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.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Fundamental Analysis
View fundamental data based on most recent published financial statements
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Technical Analysis
Check basic technical indicators and analysis based on most latest market data