Correlation Between Chemours and Reynolds
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chemours Co and Reynolds American 725, you can compare the effects of market volatilities on Chemours and Reynolds 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 Reynolds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Reynolds.
Diversification Opportunities for Chemours and Reynolds
Very good diversification
The 3 months correlation between Chemours and Reynolds is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Reynolds American 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reynolds American 725 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 Reynolds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reynolds American 725 has no effect on the direction of Chemours i.e., Chemours and Reynolds go up and down completely randomly.
Pair Corralation between Chemours and Reynolds
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 2.68 times more return on investment than Reynolds. However, Chemours is 2.68 times more volatile than Reynolds American 725. It trades about 0.04 of its potential returns per unit of risk. Reynolds American 725 is currently generating about -0.01 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 35.00 from holding Chemours Co or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chemours Co vs. Reynolds American 725
Performance |
| Timeline |
| Chemours |
| Reynolds American 725 |
Chemours and Reynolds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Reynolds
The main advantage of trading using opposite Chemours and Reynolds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Reynolds 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 Reynolds will offset losses from the drop in Reynolds' long position.| Chemours vs. Eastman Chemical | Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide |
| Reynolds vs. Diamond Estates Wines | Reynolds vs. Uranium Energy Corp | Reynolds vs. Diageo PLC ADR | Reynolds vs. Agnico Eagle Mines |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |