Correlation Between Celanese and Ansell
Can any of the company-specific risk be diversified away by investing in both Celanese and Ansell 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 Celanese and Ansell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celanese and Ansell Ltd ADR, you can compare the effects of market volatilities on Celanese and Ansell 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 Celanese with a short position of Ansell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celanese and Ansell.
Diversification Opportunities for Celanese and Ansell
Excellent diversification
The 3 months correlation between Celanese and Ansell is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Celanese and Ansell Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ansell Ltd ADR and Celanese 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 Celanese are associated (or correlated) with Ansell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ansell Ltd ADR has no effect on the direction of Celanese i.e., Celanese and Ansell go up and down completely randomly.
Pair Corralation between Celanese and Ansell
If you would invest 7,761 in Ansell Ltd ADR on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Ansell Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Celanese vs. Ansell Ltd ADR
Performance |
| Timeline |
| Celanese |
| Ansell Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Celanese and Ansell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celanese and Ansell
The main advantage of trading using opposite Celanese and Ansell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celanese position performs unexpectedly, Ansell 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 Ansell will offset losses from the drop in Ansell's long position.| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Huntsman |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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