Correlation Between Chemours and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Chemours and XL Fleet 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 XL Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and XL Fleet Corp, you can compare the effects of market volatilities on Chemours and XL Fleet 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 XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and XL Fleet.
Diversification Opportunities for Chemours and XL Fleet
Very good diversification
The 3 months correlation between Chemours and XL Fleet is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp 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 XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Chemours i.e., Chemours and XL Fleet go up and down completely randomly.
Pair Corralation between Chemours and XL Fleet
If you would invest 2,249 in Chemours Co on September 2, 2024 and sell it today you would lose (75.00) from holding Chemours Co or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Chemours Co vs. XL Fleet Corp
Performance |
| Timeline |
| Chemours |
| XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chemours and XL Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and XL Fleet
The main advantage of trading using opposite Chemours and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, XL Fleet 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 XL Fleet will offset losses from the drop in XL Fleet's long position.| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
| XL Fleet vs. Nasdaq Inc | XL Fleet vs. Sphere Entertainment Co | XL Fleet vs. Verde Clean Fuels | XL Fleet vs. Small Cap Premium |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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