Correlation Between Scotts Miracle and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Scotts Miracle and Spectrum Brands 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 Scotts Miracle and Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scotts Miracle Gro and Spectrum Brands Holdings, you can compare the effects of market volatilities on Scotts Miracle and Spectrum 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 Scotts Miracle with a short position of Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scotts Miracle and Spectrum Brands.
Diversification Opportunities for Scotts Miracle and Spectrum Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scotts and Spectrum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scotts Miracle Gro and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings and Scotts Miracle 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 Scotts Miracle Gro are associated (or correlated) with Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Scotts Miracle i.e., Scotts Miracle and Spectrum Brands go up and down completely randomly.
Pair Corralation between Scotts Miracle and Spectrum Brands
If you would invest 6,568 in Scotts Miracle Gro on January 20, 2024 and sell it today you would earn a total of 228.00 from holding Scotts Miracle Gro or generate 3.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Scotts Miracle Gro vs. Spectrum Brands Holdings
Performance |
Timeline |
Scotts Miracle Gro |
Spectrum Brands Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scotts Miracle and Spectrum Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scotts Miracle and Spectrum Brands
The main advantage of trading using opposite Scotts Miracle and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scotts Miracle position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.Scotts Miracle vs. Corteva | Scotts Miracle vs. CF Industries Holdings | Scotts Miracle vs. American Vanguard | Scotts Miracle vs. Intrepid Potash |
Spectrum Brands vs. Simon Property Group | Spectrum Brands vs. Grocery Outlet Holding | Spectrum Brands vs. Arrow Electronics | Spectrum Brands vs. Vacasa Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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