Correlation Between Chemours and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Chemours and Schibsted ASA 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 Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Schibsted ASA ADR, you can compare the effects of market volatilities on Chemours and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Schibsted ASA.
Diversification Opportunities for Chemours and Schibsted ASA
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chemours and Schibsted is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Schibsted ASA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA ADR 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA ADR has no effect on the direction of Chemours i.e., Chemours and Schibsted ASA go up and down completely randomly.
Pair Corralation between Chemours and Schibsted ASA
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 1.07 times more return on investment than Schibsted ASA. However, Chemours is 1.07 times more volatile than Schibsted ASA ADR. It trades about 0.21 of its potential returns per unit of risk. Schibsted ASA ADR is currently generating about -0.04 per unit of risk. If you would invest 1,671 in Chemours Co on November 3, 2024 and sell it today you would earn a total of 228.00 from holding Chemours Co or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Schibsted ASA ADR
Performance |
| Timeline |
| Chemours |
| Schibsted ASA ADR |
Chemours and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Schibsted ASA
The main advantage of trading using opposite Chemours and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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