Correlation Between C Bond and Chemours
Can any of the company-specific risk be diversified away by investing in both C Bond and Chemours 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 C Bond and Chemours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Bond Systems and Chemours Co, you can compare the effects of market volatilities on C Bond and Chemours 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 C Bond with a short position of Chemours. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Bond and Chemours.
Diversification Opportunities for C Bond and Chemours
Excellent diversification
The 3 months correlation between CBNT and Chemours is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding C Bond Systems and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours and C Bond 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 C Bond Systems are associated (or correlated) with Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of C Bond i.e., C Bond and Chemours go up and down completely randomly.
Pair Corralation between C Bond and Chemours
Given the investment horizon of 90 days C Bond Systems is expected to under-perform the Chemours. In addition to that, C Bond is 2.37 times more volatile than Chemours Co. It trades about -0.04 of its total potential returns per unit of risk. Chemours Co is currently generating about -0.02 per unit of volatility. If you would invest 2,948 in Chemours Co on September 12, 2024 and sell it today you would lose (831.00) from holding Chemours Co or give up 28.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
C Bond Systems vs. Chemours Co
Performance |
| Timeline |
| C Bond Systems |
| Chemours |
C Bond and Chemours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Bond and Chemours
The main advantage of trading using opposite C Bond and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Bond position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.| C Bond vs. Chemours Co | C Bond vs. International Flavors Fragrances | C Bond vs. Air Products and | C Bond vs. PPG Industries |
| Chemours vs. Griffon | Chemours vs. Merck Company | Chemours vs. Brinker International | Chemours vs. Alcoa Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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