Correlation Between Chemours and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chemours Co and SOUTHERN PER CORP, you can compare the effects of market volatilities on Chemours and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and SOUTHERN.
Diversification Opportunities for Chemours and SOUTHERN
Very good diversification
The 3 months correlation between Chemours and SOUTHERN is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and SOUTHERN PER CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN PER P 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN PER P has no effect on the direction of Chemours i.e., Chemours and SOUTHERN go up and down completely randomly.
Pair Corralation between Chemours and SOUTHERN
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the SOUTHERN. But the stock apears to be less risky and, when comparing its historical volatility, Chemours Co is 16.0 times less risky than SOUTHERN. The stock trades about -0.01 of its potential returns per unit of risk. The SOUTHERN PER CORP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,970 in SOUTHERN PER CORP on August 31, 2024 and sell it today you would earn a total of 47.00 from holding SOUTHERN PER CORP or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.92% |
| Values | Daily Returns |
Chemours Co vs. SOUTHERN PER CORP
Performance |
| Timeline |
| Chemours |
| SOUTHERN PER P |
Chemours and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and SOUTHERN
The main advantage of trading using opposite Chemours and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| SOUTHERN vs. Chemours Co | SOUTHERN vs. Transocean | SOUTHERN vs. Drilling Tools International | SOUTHERN vs. Olympic Steel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |