Correlation Between Revlon and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Revlon and SPDR SP 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 Revlon and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revlon Inc and SPDR SP Dividend, you can compare the effects of market volatilities on Revlon and SPDR SP 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 Revlon with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revlon and SPDR SP.
Diversification Opportunities for Revlon and SPDR SP
Pay attention - limited upside
The 3 months correlation between Revlon and SPDR is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Revlon Inc and SPDR SP Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Dividend and Revlon 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 Revlon Inc are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Dividend has no effect on the direction of Revlon i.e., Revlon and SPDR SP go up and down completely randomly.
Pair Corralation between Revlon and SPDR SP
Considering the 90-day investment horizon Revlon Inc is expected to under-perform the SPDR SP. In addition to that, Revlon is 17.94 times more volatile than SPDR SP Dividend. It trades about -0.02 of its total potential returns per unit of risk. SPDR SP Dividend is currently generating about 0.02 per unit of volatility. If you would invest 11,887 in SPDR SP Dividend on January 26, 2024 and sell it today you would earn a total of 958.00 from holding SPDR SP Dividend or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 32.46% |
| Values | Daily Returns |
Revlon Inc vs. SPDR SP Dividend
Performance |
| Timeline |
| Revlon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR SP Dividend |
Revlon and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revlon and SPDR SP
The main advantage of trading using opposite Revlon and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revlon position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| Revlon vs. Crimson Wine | Revlon vs. Hf Foods Group | Revlon vs. Wineco Productions | Revlon vs. MGP Ingredients |
| SPDR SP vs. SPDR Russell 1000 | SPDR SP vs. SPDR MSCI USA | SPDR SP vs. SPDR MSCI EAFE | SPDR SP vs. SPDR SSGA Large |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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