Correlation Between Kimberly Clark and Meta Platforms
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Kimberly-Clark vs. Meta Platforms
Performance |
Timeline |
Kimberly-Clark |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
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.Kimberly Clark vs. Colgate Palmolive | Kimberly Clark vs. Estee Lauder Companies | Kimberly Clark vs. United Guardian | Kimberly Clark vs. Unilever PLC ADR |
Meta Platforms vs. Jacobs Solutions | Meta Platforms vs. ATRenew Inc DRC | Meta Platforms vs. Radcom | Meta Platforms vs. Arrow Electronics |
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 |