Correlation Between Viacom and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Viacom 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 Viacom and Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viacom Inc and Whirlpool, you can compare the effects of market volatilities on Viacom 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 Viacom with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viacom and Whirlpool.
Diversification Opportunities for Viacom and Whirlpool
Pay attention - limited upside
The 3 months correlation between Viacom and Whirlpool is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Viacom Inc and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool and Viacom 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 Viacom Inc 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 Viacom i.e., Viacom and Whirlpool go up and down completely randomly.
Pair Corralation between Viacom and Whirlpool
If you would invest (100.00) in Viacom Inc on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Viacom Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Viacom Inc vs. Whirlpool
Performance |
| Timeline |
| Viacom Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Whirlpool |
Viacom and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viacom and Whirlpool
The main advantage of trading using opposite Viacom and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viacom 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.| Viacom vs. Mangazeya Mining | Viacom vs. SunLink Health Systems | Viacom vs. Avarone Metals | Viacom vs. Summit Materials |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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