Correlation Between Chemours and NUCOR
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By analyzing existing cross correlation between Chemours Co and NUCOR P 395, you can compare the effects of market volatilities on Chemours and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and NUCOR.
Diversification Opportunities for Chemours and NUCOR
Excellent diversification
The 3 months correlation between Chemours and NUCOR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of Chemours i.e., Chemours and NUCOR go up and down completely randomly.
Pair Corralation between Chemours and NUCOR
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the NUCOR. In addition to that, Chemours is 10.82 times more volatile than NUCOR P 395. It trades about -0.01 of its total potential returns per unit of risk. NUCOR P 395 is currently generating about 0.01 per unit of volatility. If you would invest 9,624 in NUCOR P 395 on September 3, 2024 and sell it today you would earn a total of 57.00 from holding NUCOR P 395 or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Chemours Co vs. NUCOR P 395
Performance |
| Timeline |
| Chemours |
| NUCOR P 5 |
Chemours and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and NUCOR
The main advantage of trading using opposite Chemours and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.| Chemours vs. SPACE | Chemours vs. Bayview Acquisition Corp | Chemours vs. T Rowe Price | Chemours vs. Ampleforth |
| NUCOR vs. Merit Medical Systems | NUCOR vs. CF Industries Holdings | NUCOR vs. The Mosaic | NUCOR vs. Sensient Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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