Correlation Between That Marketing and Colgate Palmolive

Can any of the company-specific risk be diversified away by investing in both That Marketing and Colgate Palmolive 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 That Marketing and Colgate Palmolive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between That Marketing Solution and Colgate Palmolive, you can compare the effects of market volatilities on That Marketing and Colgate Palmolive 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 That Marketing with a short position of Colgate Palmolive. Check out your portfolio center. Please also check ongoing floating volatility patterns of That Marketing and Colgate Palmolive.

Diversification Opportunities for That Marketing and Colgate Palmolive

0.0

Correlation Coefficient

That Marketing  Colgate Palmolive

Pay attention - limited upside

The 3 months correlation between That and Colgate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding That Marketing Solution and Colgate Palmolive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colgate Palmolive and That Marketing 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 That Marketing Solution are associated (or correlated) with Colgate Palmolive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colgate Palmolive has no effect on the direction of That Marketing i.e., That Marketing and Colgate Palmolive go up and down completely randomly.

Pair Corralation between That Marketing and Colgate Palmolive

If you would invest  0.00  in That Marketing Solution on September 7, 2025 and sell it today you would earn a total of  0.00  from holding That Marketing Solution or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

That Marketing Solution  vs.  Colgate Palmolive

That Marketing Solution

Risk-Adjusted Performance

Weakest

Over the last 90 days That Marketing Solution has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, That Marketing is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Colgate Palmolive

Risk-Adjusted Performance

Weakest

Over the last 90 days Colgate Palmolive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with That Marketing and Colgate Palmolive

The main advantage of trading using opposite That Marketing and Colgate Palmolive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if That Marketing position performs unexpectedly, Colgate Palmolive 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 Colgate Palmolive will offset losses from the drop in Colgate Palmolive's long position.

The idea behind That Marketing Solution and Colgate Palmolive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.