Correlation Between Astar and Celanese
Can any of the company-specific risk be diversified away by investing in both Astar and Celanese 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 Astar and Celanese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Celanese, you can compare the effects of market volatilities on Astar and Celanese 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 Astar with a short position of Celanese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Celanese.
Diversification Opportunities for Astar and Celanese
Very good diversification
The 3 months correlation between Astar and Celanese is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Celanese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celanese and Astar 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 Astar are associated (or correlated) with Celanese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celanese has no effect on the direction of Astar i.e., Astar and Celanese go up and down completely randomly.
Pair Corralation between Astar and Celanese
Assuming the 90 days trading horizon Astar is expected to under-perform the Celanese. In addition to that, Astar is 2.11 times more volatile than Celanese. It trades about -0.26 of its total potential returns per unit of risk. Celanese is currently generating about 0.1 per unit of volatility. If you would invest 6,842 in Celanese on November 2, 2024 and sell it today you would earn a total of 252.00 from holding Celanese or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Astar vs. Celanese
Performance |
| Timeline |
| Astar |
| Celanese |
Astar and Celanese Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Celanese
The main advantage of trading using opposite Astar and Celanese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Celanese 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 Celanese will offset losses from the drop in Celanese's long position.The idea behind Astar and Celanese 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.| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Valhi Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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