Correlation Between Tupperware Brands and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Tupperware Brands and Whirlpool 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 Tupperware Brands and Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tupperware Brands and Whirlpool, you can compare the effects of market volatilities on Tupperware Brands and Whirlpool 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 Tupperware Brands with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tupperware Brands and Whirlpool.
Diversification Opportunities for Tupperware Brands and Whirlpool
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tupperware and Whirlpool is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool and Tupperware Brands 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 Tupperware Brands are associated (or correlated) with Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of Tupperware Brands i.e., Tupperware Brands and Whirlpool go up and down completely randomly.
Pair Corralation between Tupperware Brands and Whirlpool
Considering the 90-day investment horizon Tupperware Brands is expected to under-perform the Whirlpool. In addition to that, Tupperware Brands is 3.11 times more volatile than Whirlpool. It trades about -0.21 of its total potential returns per unit of risk. Whirlpool is currently generating about -0.15 per unit of volatility. If you would invest 11,343 in Whirlpool on January 25, 2024 and sell it today you would lose (775.00) from holding Whirlpool or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tupperware Brands vs. Whirlpool
Performance |
| Timeline |
| Tupperware Brands |
| Whirlpool |
Tupperware Brands and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tupperware Brands and Whirlpool
The main advantage of trading using opposite Tupperware Brands and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tupperware Brands position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Tupperware Brands vs. Millennium Group International | Tupperware Brands vs. Sonoco Products | Tupperware Brands vs. Sealed Air | Tupperware Brands vs. Alliance Creative Gr |
| Whirlpool vs. Ethan Allen Interiors | Whirlpool vs. Mohawk Industries | Whirlpool vs. Tempur Sealy International | Whirlpool vs. MillerKnoll |
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.
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