Correlation Between Chemours and PHILIP
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By analyzing existing cross correlation between Chemours Co and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Chemours and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and PHILIP.
Diversification Opportunities for Chemours and PHILIP
Modest diversification
The 3 months correlation between Chemours and PHILIP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Chemours i.e., Chemours and PHILIP go up and down completely randomly.
Pair Corralation between Chemours and PHILIP
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the PHILIP. In addition to that, Chemours is 2.92 times more volatile than PHILIP MORRIS INTL. It trades about -0.56 of its total potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.26 per unit of volatility. If you would invest 8,286 in PHILIP MORRIS INTL on October 9, 2024 and sell it today you would lose (348.00) from holding PHILIP MORRIS INTL or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Chemours Co vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Chemours |
| PHILIP MORRIS INTL |
Chemours and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and PHILIP
The main advantage of trading using opposite Chemours and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| PHILIP vs. Kaiser Aluminum | PHILIP vs. ReTo Eco Solutions | PHILIP vs. National CineMedia | PHILIP vs. Western Copper and |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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