Correlation Between Core Molding and Chase
Can any of the company-specific risk be diversified away by investing in both Core Molding and Chase 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 Core Molding and Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Molding Technologies and Chase, you can compare the effects of market volatilities on Core Molding and Chase 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 Core Molding with a short position of Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Molding and Chase.
Diversification Opportunities for Core Molding and Chase
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Core and Chase is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Core Molding Technologies and Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase and Core Molding 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 Core Molding Technologies are associated (or correlated) with Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase has no effect on the direction of Core Molding i.e., Core Molding and Chase go up and down completely randomly.
Pair Corralation between Core Molding and Chase
If you would invest 1,580 in Core Molding Technologies on August 29, 2024 and sell it today you would earn a total of 168.00 from holding Core Molding Technologies or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Core Molding Technologies vs. Chase
Performance |
| Timeline |
| Core Molding Technologies |
| Chase |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Core Molding and Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Molding and Chase
The main advantage of trading using opposite Core Molding and Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Molding position performs unexpectedly, Chase 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 Chase will offset losses from the drop in Chase's long position.| Core Molding vs. Innospec | Core Molding vs. H B Fuller | Core Molding vs. Quaker Chemical | Core Molding vs. Minerals Technologies |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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