Correlation Between Pool Corp and Newell Brands

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Pool Corp 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 Pool Corp and Newell Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pool Corp and Newell Brands, you can compare the effects of market volatilities on Pool Corp 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 Pool Corp with a short position of Newell Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pool Corp and Newell Brands.

Diversification Opportunities for Pool Corp and Newell Brands

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between Pool Corp and Newell is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pool Corp and Newell Brands Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands and Pool Corp 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 Pool Corp 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 Pool Corp i.e., Pool Corp and Newell Brands go up and down completely randomly.

Pair Corralation between Pool Corp and Newell Brands

Given the investment horizon of 90 days Pool Corp is expected to under-perform the Newell Brands. In addition to that, Pool Corp is 1.2 times more volatile than Newell Brands. It trades about -0.15 of its total potential returns per unit of risk. Newell Brands is currently generating about -0.07 per unit of volatility. If you would invest  2,098  in Newell Brands on March 27, 2022 and sell it today you would lose (95.00)  from holding Newell Brands or give up 4.53% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Pool Corp  vs.  Newell Brands Inc

 Performance (%) 
      Timeline 
Pool Corp 
Pool Corp Performance
0 of 100
Over the last 90 days Pool Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in July 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.012
Payout Ratio
0.19
Last Split Factor
3:2
Forward Annual Dividend Rate
4.0
Dividend Date
2022-05-27
Ex Dividend Date
2022-05-13
Last Split Date
2004-09-13

Pool Corp Price Channel

Newell Brands 
Newell Performance
0 of 100
Over the last 90 days Newell Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Newell Brands is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0504
Payout Ratio
0.49
Last Split Factor
2:1
Forward Annual Dividend Rate
0.92
Dividend Date
2022-06-15
Ex Dividend Date
2022-05-27
Last Split Date
1994-09-02

Newell Price Channel

Pool Corp and Newell Brands Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Pool Corp and Newell Brands

The main advantage of trading using opposite Pool Corp and Newell Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pool Corp 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.
The idea behind Pool Corp and Newell Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go