Correlation Between Fluent and Chemours
Can any of the company-specific risk be diversified away by investing in both Fluent and Chemours 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 Fluent and Chemours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Chemours Co, you can compare the effects of market volatilities on Fluent and Chemours 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 Fluent with a short position of Chemours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Chemours.
Diversification Opportunities for Fluent and Chemours
Average diversification
The 3 months correlation between Fluent and Chemours is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours and Fluent 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 Fluent Inc are associated (or correlated) with Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of Fluent i.e., Fluent and Chemours go up and down completely randomly.
Pair Corralation between Fluent and Chemours
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Chemours. In addition to that, Fluent is 1.71 times more volatile than Chemours Co. It trades about -0.09 of its total potential returns per unit of risk. Chemours Co is currently generating about 0.14 per unit of volatility. If you would invest 2,031 in Chemours Co on September 3, 2024 and sell it today you would earn a total of 143.00 from holding Chemours Co or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. Chemours Co
Performance |
| Timeline |
| Fluent Inc |
| Chemours |
Fluent and Chemours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Chemours
The main advantage of trading using opposite Fluent and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Chemours vs. SPACE | Chemours vs. Bayview Acquisition Corp | Chemours vs. T Rowe Price | Chemours vs. Ampleforth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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