Correlation Between DXC Technology and Newell Brands
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Newell Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Newell Brands, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Newell Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Newell Brands.
Diversification Opportunities for DXC Technology and Newell Brands
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DXC and Newell is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Newell Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands and DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and Newell Brands go up and down completely randomly.
Pair Corralation between DXC Technology and Newell Brands
Considering the 90-day investment horizon DXC Technology Co is expected to generate 0.64 times more return on investment than Newell Brands. However, DXC Technology Co is 1.57 times less risky than Newell Brands. It trades about -0.04 of its potential returns per unit of risk. Newell Brands is currently generating about -0.16 per unit of risk. If you would invest 1,433 in DXC Technology Co on August 31, 2025 and sell it today you would lose (122.00) from holding DXC Technology Co or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Newell Brands
Performance |
| Timeline |
| DXC Technology |
| Newell Brands |
DXC Technology and Newell Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Newell Brands
The main advantage of trading using opposite DXC Technology and Newell Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. PSI Software AG | DXC Technology vs. IBITX Software | DXC Technology vs. Internet Gold Golden | DXC Technology vs. ISPAF |
| Newell Brands vs. B Communications | Newell Brands vs. Zhibao Technology Class | Newell Brands vs. DXC Technology Co | Newell Brands vs. Sunlands Technology Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |