Correlation Between Chase and Neo Performance
Can any of the company-specific risk be diversified away by investing in both Chase and Neo Performance 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 Chase and Neo Performance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase and Neo Performance Materials, you can compare the effects of market volatilities on Chase and Neo Performance 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 Chase with a short position of Neo Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase and Neo Performance.
Diversification Opportunities for Chase and Neo Performance
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chase and Neo is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chase and Neo Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Performance Materials and Chase 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 Chase are associated (or correlated) with Neo Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Performance Materials has no effect on the direction of Chase i.e., Chase and Neo Performance go up and down completely randomly.
Pair Corralation between Chase and Neo Performance
If you would invest 12,576 in Chase on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Chase or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Chase vs. Neo Performance Materials
Performance |
| Timeline |
| Chase |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Neo Performance Materials |
Chase and Neo Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase and Neo Performance
The main advantage of trading using opposite Chase and Neo Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase position performs unexpectedly, Neo Performance 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 Neo Performance will offset losses from the drop in Neo Performance's long position.The idea behind Chase and Neo Performance Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Neo Performance vs. Akzo Nobel NV | Neo Performance vs. Avoca LLC | Neo Performance vs. Arkema SA ADR | Neo Performance vs. HUMANA INC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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