Correlation Between Chemours and Hitachi Metals
Can any of the company-specific risk be diversified away by investing in both Chemours and Hitachi Metals 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 Hitachi Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Hitachi Metals, you can compare the effects of market volatilities on Chemours and Hitachi Metals 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 Hitachi Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Hitachi Metals.
Diversification Opportunities for Chemours and Hitachi Metals
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chemours and Hitachi is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Hitachi Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitachi Metals 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 Hitachi Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitachi Metals has no effect on the direction of Chemours i.e., Chemours and Hitachi Metals go up and down completely randomly.
Pair Corralation between Chemours and Hitachi Metals
If you would invest 1,669 in Chemours Co on November 4, 2024 and sell it today you would earn a total of 230.00 from holding Chemours Co or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Chemours Co vs. Hitachi Metals
Performance |
| Timeline |
| Chemours |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chemours and Hitachi Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Hitachi Metals
The main advantage of trading using opposite Chemours and Hitachi Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Hitachi Metals 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 Hitachi Metals will offset losses from the drop in Hitachi Metals' long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Hitachi Metals vs. JBG SMITH Properties | Hitachi Metals vs. Grupo Simec SAB | Hitachi Metals vs. ArcelorMittal SA ADR | Hitachi Metals vs. HUHUTECH International Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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