Correlation Between International Flavors and Fuchs Petrolub
Can any of the company-specific risk be diversified away by investing in both International Flavors and Fuchs Petrolub 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 International Flavors and Fuchs Petrolub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Flavors Fragrances and Fuchs Petrolub SE, you can compare the effects of market volatilities on International Flavors and Fuchs Petrolub 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 International Flavors with a short position of Fuchs Petrolub. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Flavors and Fuchs Petrolub.
Diversification Opportunities for International Flavors and Fuchs Petrolub
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Fuchs is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding International Flavors Fragranc and Fuchs Petrolub SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuchs Petrolub SE and International Flavors 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 International Flavors Fragrances are associated (or correlated) with Fuchs Petrolub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuchs Petrolub SE has no effect on the direction of International Flavors i.e., International Flavors and Fuchs Petrolub go up and down completely randomly.
Pair Corralation between International Flavors and Fuchs Petrolub
Considering the 90-day investment horizon International Flavors Fragrances is expected to generate 0.86 times more return on investment than Fuchs Petrolub. However, International Flavors Fragrances is 1.16 times less risky than Fuchs Petrolub. It trades about -0.11 of its potential returns per unit of risk. Fuchs Petrolub SE is currently generating about -0.17 per unit of risk. If you would invest 9,121 in International Flavors Fragrances on September 12, 2024 and sell it today you would lose (266.00) from holding International Flavors Fragrances or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Flavors Fragranc vs. Fuchs Petrolub SE
Performance |
| Timeline |
| International Flavors |
| Fuchs Petrolub SE |
International Flavors and Fuchs Petrolub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Flavors and Fuchs Petrolub
The main advantage of trading using opposite International Flavors and Fuchs Petrolub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Flavors position performs unexpectedly, Fuchs Petrolub 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 Fuchs Petrolub will offset losses from the drop in Fuchs Petrolub's long position.| International Flavors vs. LyondellBasell Industries NV | International Flavors vs. Cabot | International Flavors vs. Westlake Chemical | International Flavors vs. Air Products and |
| Fuchs Petrolub vs. Chemours Co | Fuchs Petrolub vs. International Flavors Fragrances | Fuchs Petrolub vs. Air Products and | Fuchs Petrolub vs. PPG Industries |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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