Correlation Between Colgate Palmolive and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both Colgate Palmolive and Unilever PLC 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 Colgate Palmolive and Unilever PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colgate Palmolive and Unilever PLC, you can compare the effects of market volatilities on Colgate Palmolive and Unilever PLC 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 Colgate Palmolive with a short position of Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colgate Palmolive and Unilever PLC.
Diversification Opportunities for Colgate Palmolive and Unilever PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Colgate and Unilever is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Colgate Palmolive and Unilever PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC and Colgate Palmolive 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 Colgate Palmolive are associated (or correlated) with Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC has no effect on the direction of Colgate Palmolive i.e., Colgate Palmolive and Unilever PLC go up and down completely randomly.
Pair Corralation between Colgate Palmolive and Unilever PLC
If you would invest 0.00 in Colgate Palmolive on July 13, 2025 and sell it today you would earn a total of 0.00 from holding Colgate Palmolive or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.52% |
| Values | Daily Returns |
Colgate Palmolive vs. Unilever PLC
Performance |
| Timeline |
| Colgate Palmolive |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Unilever PLC |
Colgate Palmolive and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colgate Palmolive and Unilever PLC
The main advantage of trading using opposite Colgate Palmolive and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colgate Palmolive position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC's long position.| Colgate Palmolive vs. Procore Technologies, | Colgate Palmolive vs. Marfrig Global Foods | Colgate Palmolive vs. STMicroelectronics NV | Colgate Palmolive vs. Technos SA |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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