Correlation Between Newell Brands and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both Newell Brands and Edgewell Personal 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 Newell Brands and Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newell Brands and Edgewell Personal Care, you can compare the effects of market volatilities on Newell Brands and Edgewell Personal 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 Newell Brands with a short position of Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newell Brands and Edgewell Personal.
Diversification Opportunities for Newell Brands and Edgewell Personal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newell and Edgewell is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care and Newell Brands 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 Newell Brands are associated (or correlated) with Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Newell Brands i.e., Newell Brands and Edgewell Personal go up and down completely randomly.
Pair Corralation between Newell Brands and Edgewell Personal
Considering the 90-day investment horizon Newell Brands is expected to under-perform the Edgewell Personal. In addition to that, Newell Brands is 2.15 times more volatile than Edgewell Personal Care. It trades about -0.16 of its total potential returns per unit of risk. Edgewell Personal Care is currently generating about -0.21 per unit of volatility. If you would invest 2,149 in Edgewell Personal Care on September 10, 2025 and sell it today you would lose (507.00) from holding Edgewell Personal Care or give up 23.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newell Brands vs. Edgewell Personal Care
Performance |
| Timeline |
| Newell Brands |
| Edgewell Personal Care |
Newell Brands and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newell Brands and Edgewell Personal
The main advantage of trading using opposite Newell Brands and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| Newell Brands vs. Spectrum Brands Holdings | Newell Brands vs. Coursera | Newell Brands vs. Ingles Markets Incorporated | Newell Brands vs. Phoenix Education Partners, |
| Edgewell Personal vs. Mission Produce | Edgewell Personal vs. Natural Grocers by | Edgewell Personal vs. Herbalife Nutrition | Edgewell Personal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |