Correlation Between Spectrum Brands and Helen Of

Can any of the company-specific risk be diversified away by investing in both Spectrum Brands and Helen Of 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 Spectrum Brands and Helen Of into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spectrum Brands Holdings and Helen of Troy, you can compare the effects of market volatilities on Spectrum Brands and Helen Of 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 Spectrum Brands with a short position of Helen Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Helen Of.

Diversification Opportunities for Spectrum Brands and Helen Of

0.0

Correlation Coefficient

Spectrum Brands  Helen Of

Pay attention - limited upside

The 3 months correlation between Spectrum and Helen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Helen of Troy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helen of Troy and Spectrum 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 Spectrum Brands Holdings are associated (or correlated) with Helen Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helen of Troy has no effect on the direction of Spectrum Brands i.e., Spectrum Brands and Helen Of go up and down completely randomly.

Pair Corralation between Spectrum Brands and Helen Of

Considering the 90-day investment horizon Spectrum Brands Holdings is expected to generate 0.49 times more return on investment than Helen Of. However, Spectrum Brands Holdings is 2.03 times less risky than Helen Of. It trades about 0.0 of its potential returns per unit of risk. Helen of Troy is currently generating about 0.0 per unit of risk. If you would invest  5,826  in Spectrum Brands Holdings on May 27, 2025 and sell it today you would lose (94.00) from holding Spectrum Brands Holdings or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Spectrum Brands Holdings  vs.  Helen of Troy

Spectrum Brands Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Spectrum Brands Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Spectrum Brands is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Helen of Troy

Risk-Adjusted Performance

Weakest

Over the last 90 days Helen of Troy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Helen Of is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Spectrum Brands and Helen Of

The main advantage of trading using opposite Spectrum Brands and Helen Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands position performs unexpectedly, Helen Of 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 Helen Of will offset losses from the drop in Helen Of's long position.

The idea behind Spectrum Brands Holdings and Helen of Troy 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 the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.