Correlation Between Chemours and Catalent
Can any of the company-specific risk be diversified away by investing in both Chemours and Catalent 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 Catalent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Catalent, you can compare the effects of market volatilities on Chemours and Catalent 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 Catalent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Catalent.
Diversification Opportunities for Chemours and Catalent
Pay attention - limited upside
The 3 months correlation between Chemours and Catalent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Catalent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalent 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 Catalent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalent has no effect on the direction of Chemours i.e., Chemours and Catalent go up and down completely randomly.
Pair Corralation between Chemours and Catalent
If you would invest (100.00) in Catalent on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Catalent or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chemours Co vs. Catalent
Performance |
| Timeline |
| Chemours |
| Catalent |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Chemours and Catalent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Catalent
The main advantage of trading using opposite Chemours and Catalent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Catalent 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 Catalent will offset losses from the drop in Catalent's long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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