Correlation Between Chemours and Symrise Ag
Can any of the company-specific risk be diversified away by investing in both Chemours and Symrise Ag 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 Symrise Ag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Symrise Ag PK, you can compare the effects of market volatilities on Chemours and Symrise Ag 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 Symrise Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Symrise Ag.
Diversification Opportunities for Chemours and Symrise Ag
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chemours and Symrise is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Symrise Ag PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symrise Ag PK 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 Symrise Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symrise Ag PK has no effect on the direction of Chemours i.e., Chemours and Symrise Ag go up and down completely randomly.
Pair Corralation between Chemours and Symrise Ag
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 2.11 times more return on investment than Symrise Ag. However, Chemours is 2.11 times more volatile than Symrise Ag PK. It trades about 0.23 of its potential returns per unit of risk. Symrise Ag PK is currently generating about -0.15 per unit of risk. If you would invest 1,905 in Chemours Co on September 13, 2024 and sell it today you would earn a total of 212.00 from holding Chemours Co or generate 11.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Symrise Ag PK
Performance |
| Timeline |
| Chemours |
| Symrise Ag PK |
Chemours and Symrise Ag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Symrise Ag
The main advantage of trading using opposite Chemours and Symrise Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Symrise Ag 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 Symrise Ag will offset losses from the drop in Symrise Ag's long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Symrise Ag vs. Chemours Co | Symrise Ag vs. International Flavors Fragrances | Symrise Ag vs. Air Products and | Symrise Ag vs. PPG Industries |
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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