Correlation Between ACG Metals and Stepan
Can any of the company-specific risk be diversified away by investing in both ACG Metals and Stepan 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 ACG Metals and Stepan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and Stepan Company, you can compare the effects of market volatilities on ACG Metals and Stepan 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 ACG Metals with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and Stepan.
Diversification Opportunities for ACG Metals and Stepan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and Stepan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and ACG Metals 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 ACG Metals Limited are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of ACG Metals i.e., ACG Metals and Stepan go up and down completely randomly.
Pair Corralation between ACG Metals and Stepan
If you would invest 7,252 in Stepan Company on September 2, 2024 and sell it today you would earn a total of 438.00 from holding Stepan Company or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. Stepan Company
Performance |
| Timeline |
| ACG Metals Limited |
| Stepan Company |
ACG Metals and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and Stepan
The main advantage of trading using opposite ACG Metals and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| ACG Metals vs. Legacy Education | ACG Metals vs. Apple Inc | ACG Metals vs. NVIDIA | ACG Metals vs. Microsoft |
| Stepan vs. Linde plc Ordinary | Stepan vs. Air Products and | Stepan vs. Aquagold International | Stepan vs. Thrivent High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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