Correlation Analysis Between Whirlpool and Fortune Brands

This module allows you to analyze existing cross correlation between Whirlpool Corporation and Fortune Brands Home Security. You can compare the effects of market volatilities on Whirlpool and Fortune Brands 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 Whirlpool with a short position of Fortune Brands. See also your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Fortune Brands.
Horizon     30 Days    Login   to change
Symbolsvs

Whirlpool Corp.  vs.  Fortune Brands Home Security I

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Whirlpool Corporation is expected to under-perform the Fortune Brands. In addition to that, Whirlpool is 1.33 times more volatile than Fortune Brands Home Security. It trades about -0.13 of its total potential returns per unit of risk. Fortune Brands Home Security is currently generating about 0.04 per unit of volatility. If you would invest  5,486  in Fortune Brands Home Security on August 20, 2018 and sell it today you would earn a total of  38.00  from holding Fortune Brands Home Security or generate 0.69% return on investment over 30 days.

Pair Corralation between Whirlpool and Fortune Brands

0.42
Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
Whirlpool  
0 

Risk-Adjusted Performance

Over the last 30 days Whirlpool Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Fortune Brands Home  
2 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Fortune Brands Home Security are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1161.22

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