Correlation Between Tapestry and PHILIP

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

By analyzing existing cross correlation between Tapestry and PHILIP MORRIS INTERNATIONAL, you can compare the effects of market volatilities on Tapestry and PHILIP 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 Tapestry with a short position of PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tapestry and PHILIP.

Diversification Opportunities for Tapestry and PHILIP

0.0

Correlation Coefficient

Tapestry  PHILIP

Pay attention - limited upside

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

Pair Corralation between Tapestry and PHILIP

If you would invest  8,006  in Tapestry on May 28, 2025 and sell it today you would earn a total of  1,841  from holding Tapestry or generate 23.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tapestry  vs.  PHILIP MORRIS INTERNATIONAL

Tapestry

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tapestry are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Tapestry reported solid returns over the last few months and may actually be approaching a breakup point.

PHILIP MORRIS INTERN

Risk-Adjusted Performance

Weakest

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

Pair Trading with Tapestry and PHILIP

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

The idea behind Tapestry and PHILIP MORRIS INTERNATIONAL 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.