Correlation Between Newell Brands and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Newell Brands and Spectrum 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 Newell Brands and Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newell Brands and Spectrum Brands Holdings, you can compare the effects of market volatilities on Newell Brands and Spectrum 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 Newell Brands with a short position of Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newell Brands and Spectrum Brands.
Diversification Opportunities for Newell Brands and Spectrum Brands
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newell and Spectrum is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Newell Brands i.e., Newell Brands and Spectrum Brands go up and down completely randomly.
Pair Corralation between Newell Brands and Spectrum Brands
Considering the 90-day investment horizon Newell Brands is expected to under-perform the Spectrum Brands. In addition to that, Newell Brands is 1.81 times more volatile than Spectrum Brands Holdings. It trades about -0.16 of its total potential returns per unit of risk. Spectrum Brands Holdings is currently generating about 0.07 per unit of volatility. If you would invest 5,442 in Spectrum Brands Holdings on August 31, 2025 and sell it today you would earn a total of 493.00 from holding Spectrum Brands Holdings or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newell Brands vs. Spectrum Brands Holdings
Performance |
| Timeline |
| Newell Brands |
| Spectrum Brands Holdings |
Newell Brands and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newell Brands and Spectrum Brands
The main advantage of trading using opposite Newell Brands and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands position performs unexpectedly, Spectrum 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.| Newell Brands vs. Harmony Gold Mining | Newell Brands vs. The Dewey Electronics | Newell Brands vs. Electronic Arts | Newell Brands vs. Tonopah Divide Mining |
| Spectrum Brands vs. Yuexiu Transport Infrastructure | Spectrum Brands vs. United Rentals | Spectrum Brands vs. Roadrunner Transportation Systems | Spectrum Brands vs. Global Net Lease |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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