Correlation Between Springs Global and Whirlpool
Can any of the company-specific risk be diversified away by investing in both Springs Global 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 Springs Global and Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Springs Global Participaes and Whirlpool SA, you can compare the effects of market volatilities on Springs Global 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 Springs Global with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Springs Global and Whirlpool.
Diversification Opportunities for Springs Global and Whirlpool
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Springs and Whirlpool is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Springs Global Participaes and Whirlpool SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool SA and Springs Global 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 Springs Global Participaes 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 SA has no effect on the direction of Springs Global i.e., Springs Global and Whirlpool go up and down completely randomly.
Pair Corralation between Springs Global and Whirlpool
If you would invest 164.00 in Springs Global Participaes on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Springs Global Participaes or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Springs Global Participaes vs. Whirlpool SA
Performance |
Timeline |
Springs Global Parti |
Whirlpool SA |
Springs Global and Whirlpool Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Springs Global and Whirlpool
The main advantage of trading using opposite Springs Global and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Springs Global 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.Springs Global vs. Engie Brasil Energia | Springs Global vs. Grendene SA | Springs Global vs. M Dias Branco | Springs Global vs. BTG Pactual Logstica |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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