Correlation Between Ecovyst and International Flavors
Can any of the company-specific risk be diversified away by investing in both Ecovyst and International Flavors 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 Ecovyst and International Flavors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecovyst and International Flavors Fragrances, you can compare the effects of market volatilities on Ecovyst and International Flavors 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 Ecovyst with a short position of International Flavors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecovyst and International Flavors.
Diversification Opportunities for Ecovyst and International Flavors
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ecovyst and International is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ecovyst and International Flavors Fragranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Flavors and Ecovyst 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 Ecovyst are associated (or correlated) with International Flavors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Flavors has no effect on the direction of Ecovyst i.e., Ecovyst and International Flavors go up and down completely randomly.
Pair Corralation between Ecovyst and International Flavors
Given the investment horizon of 90 days Ecovyst is expected to generate 1.53 times more return on investment than International Flavors. However, Ecovyst is 1.53 times more volatile than International Flavors Fragrances. It trades about 0.13 of its potential returns per unit of risk. International Flavors Fragrances is currently generating about -0.17 per unit of risk. If you would invest 644.00 in Ecovyst on October 20, 2024 and sell it today you would earn a total of 144.00 from holding Ecovyst or generate 22.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecovyst vs. International Flavors Fragranc
Performance |
| Timeline |
| Ecovyst |
| International Flavors |
Ecovyst and International Flavors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecovyst and International Flavors
The main advantage of trading using opposite Ecovyst and International Flavors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecovyst position performs unexpectedly, International Flavors 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 International Flavors will offset losses from the drop in International Flavors' long position.| Ecovyst vs. Orion Engineered Carbons | Ecovyst vs. Cabot | Ecovyst vs. Minerals Technologies | Ecovyst vs. Quaker Chemical |
| International Flavors vs. LyondellBasell Industries NV | International Flavors vs. Cabot | International Flavors vs. Westlake Chemical | International Flavors vs. Air Products and |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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