Correlation Between Unilever PLC and Coty
Can any of the company-specific risk be diversified away by investing in both Unilever PLC and Coty 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 Unilever PLC and Coty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unilever PLC and Coty Inc, you can compare the effects of market volatilities on Unilever PLC and Coty 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 Unilever PLC with a short position of Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unilever PLC and Coty.
Diversification Opportunities for Unilever PLC and Coty
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Unilever and Coty is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Unilever PLC and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc and Unilever 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 Unilever PLC are associated (or correlated) with Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of Unilever PLC i.e., Unilever PLC and Coty go up and down completely randomly.
Pair Corralation between Unilever PLC and Coty
Assuming the 90 days trading horizon Unilever PLC is expected to generate 0.29 times more return on investment than Coty. However, Unilever PLC is 3.51 times less risky than Coty. It trades about 0.04 of its potential returns per unit of risk. Coty Inc is currently generating about -0.04 per unit of risk. If you would invest 33,015 in Unilever PLC on July 21, 2025 and sell it today you would earn a total of 997.00 from holding Unilever PLC or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unilever PLC vs. Coty Inc
Performance |
| Timeline |
| Unilever PLC |
| Coty Inc |
Unilever PLC and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unilever PLC and Coty
The main advantage of trading using opposite Unilever PLC and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unilever PLC position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty's long position.| Unilever PLC vs. Nordon Indstrias Metalrgicas | Unilever PLC vs. Host Hotels Resorts, | Unilever PLC vs. InterContinental Hotels Group | Unilever PLC vs. METISA Metalrgica Timboense |
| Coty vs. PENN Entertainment, | Coty vs. Electronic Arts | Coty vs. The Home Depot | Coty vs. Live Nation Entertainment, |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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