Correlation Between Chemours and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both Chemours and Bankers Investment 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 Chemours and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Bankers Investment Trust, you can compare the effects of market volatilities on Chemours and Bankers Investment 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 Chemours with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Bankers Investment.
Diversification Opportunities for Chemours and Bankers Investment
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chemours and Bankers is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and Chemours 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 Chemours Co are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Chemours i.e., Chemours and Bankers Investment go up and down completely randomly.
Pair Corralation between Chemours and Bankers Investment
Assuming the 90 days trading horizon Chemours Co is expected to generate 2.91 times more return on investment than Bankers Investment. However, Chemours is 2.91 times more volatile than Bankers Investment Trust. It trades about 0.2 of its potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.37 per unit of risk. If you would invest 1,703 in Chemours Co on November 3, 2024 and sell it today you would earn a total of 219.00 from holding Chemours Co or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Bankers Investment Trust
Performance |
| Timeline |
| Chemours |
| Bankers Investment Trust |
Chemours and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Bankers Investment
The main advantage of trading using opposite Chemours and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Bankers Investment 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| Chemours vs. Nordic Semiconductor ASA | Chemours vs. Primary Health Properties | Chemours vs. Monster Beverage Corp | Chemours vs. Universal Health Services |
| Bankers Investment vs. Leroy Seafood Group | Bankers Investment vs. Gaztransport et Technigaz | Bankers Investment vs. Grieg Seafood | Bankers Investment vs. Vitec Software Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |