Correlation Between Dole PLC and Newell Brands
Can any of the company-specific risk be diversified away by investing in both Dole PLC and Newell 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 Dole PLC and Newell Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dole PLC and Newell Brands, you can compare the effects of market volatilities on Dole PLC and Newell 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 Dole PLC with a short position of Newell Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dole PLC and Newell Brands.
Diversification Opportunities for Dole PLC and Newell Brands
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dole and Newell is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dole PLC and Newell Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands and Dole PLC 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 Dole PLC are associated (or correlated) with Newell Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands has no effect on the direction of Dole PLC i.e., Dole PLC and Newell Brands go up and down completely randomly.
Pair Corralation between Dole PLC and Newell Brands
Given the investment horizon of 90 days Dole PLC is expected to generate 0.32 times more return on investment than Newell Brands. However, Dole PLC is 3.1 times less risky than Newell Brands. It trades about 0.12 of its potential returns per unit of risk. Newell Brands is currently generating about -0.16 per unit of risk. If you would invest 1,330 in Dole PLC on September 10, 2025 and sell it today you would earn a total of 137.00 from holding Dole PLC or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dole PLC vs. Newell Brands
Performance |
| Timeline |
| Dole PLC |
| Newell Brands |
Dole PLC and Newell Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dole PLC and Newell Brands
The main advantage of trading using opposite Dole PLC and Newell Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dole PLC position performs unexpectedly, Newell 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 Newell Brands will offset losses from the drop in Newell Brands' long position.| Dole PLC vs. Universal | Dole PLC vs. Phoenix Education Partners, | Dole PLC vs. Afya | Dole PLC vs. Vital Farms |
| Newell Brands vs. Spectrum Brands Holdings | Newell Brands vs. Coursera | Newell Brands vs. Ingles Markets Incorporated | Newell Brands vs. Phoenix Education Partners, |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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