Correlation Between Inter Parfums and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Spectrum Brands Holdings, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Spectrum Brands.
Diversification Opportunities for Inter Parfums and Spectrum Brands
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inter and Spectrum is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums 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 Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and Spectrum Brands go up and down completely randomly.
Pair Corralation between Inter Parfums and Spectrum Brands
Given the investment horizon of 90 days Inter Parfums is expected to under-perform the Spectrum Brands. In addition to that, Inter Parfums is 2.05 times more volatile than Spectrum Brands Holdings. It trades about -0.27 of its total potential returns per unit of risk. Spectrum Brands Holdings is currently generating about -0.14 per unit of volatility. If you would invest 8,509 in Spectrum Brands Holdings on February 2, 2024 and sell it today you would lose (321.00) from holding Spectrum Brands Holdings or give up 3.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Inter Parfums vs. Spectrum Brands Holdings
Performance |
Timeline |
Inter Parfums |
Spectrum Brands Holdings |
Inter Parfums and Spectrum Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inter Parfums and Spectrum Brands
The main advantage of trading using opposite Inter Parfums and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |