Correlation Between Ebro Foods and CHEMICAL INDUSTRIES
Can any of the company-specific risk be diversified away by investing in both Ebro Foods and CHEMICAL INDUSTRIES 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 Ebro Foods and CHEMICAL INDUSTRIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods SA and CHEMICAL INDUSTRIES, you can compare the effects of market volatilities on Ebro Foods and CHEMICAL INDUSTRIES 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 Ebro Foods with a short position of CHEMICAL INDUSTRIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and CHEMICAL INDUSTRIES.
Diversification Opportunities for Ebro Foods and CHEMICAL INDUSTRIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ebro and CHEMICAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods SA and CHEMICAL INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMICAL INDUSTRIES and Ebro Foods 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 Ebro Foods SA are associated (or correlated) with CHEMICAL INDUSTRIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMICAL INDUSTRIES has no effect on the direction of Ebro Foods i.e., Ebro Foods and CHEMICAL INDUSTRIES go up and down completely randomly.
Pair Corralation between Ebro Foods and CHEMICAL INDUSTRIES
If you would invest 43.00 in CHEMICAL INDUSTRIES on September 25, 2024 and sell it today you would earn a total of 0.00 from holding CHEMICAL INDUSTRIES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebro Foods SA vs. CHEMICAL INDUSTRIES
Performance |
| Timeline |
| Ebro Foods SA |
| CHEMICAL INDUSTRIES |
Ebro Foods and CHEMICAL INDUSTRIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and CHEMICAL INDUSTRIES
The main advantage of trading using opposite Ebro Foods and CHEMICAL INDUSTRIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods position performs unexpectedly, CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES will offset losses from the drop in CHEMICAL INDUSTRIES's long position.| Ebro Foods vs. JAPAN TOBACCO UNSPADR12 | Ebro Foods vs. GALENA MINING LTD | Ebro Foods vs. Perseus Mining Limited | Ebro Foods vs. BRIT AMER TOBACCO |
| CHEMICAL INDUSTRIES vs. Ebro Foods SA | CHEMICAL INDUSTRIES vs. Flowers Foods | CHEMICAL INDUSTRIES vs. AIR PRODCHEMICALS | CHEMICAL INDUSTRIES vs. China BlueChemical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |