Correlation Between Koppers Holdings and Chase
Can any of the company-specific risk be diversified away by investing in both Koppers Holdings 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 Koppers Holdings and Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koppers Holdings and Chase, you can compare the effects of market volatilities on Koppers Holdings 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 Koppers Holdings with a short position of Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koppers Holdings and Chase.
Diversification Opportunities for Koppers Holdings and Chase
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Koppers and Chase is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Koppers Holdings and Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase and Koppers Holdings 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 Koppers Holdings 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 Koppers Holdings i.e., Koppers Holdings and Chase go up and down completely randomly.
Pair Corralation between Koppers Holdings and Chase
Considering the 90-day investment horizon Koppers Holdings is expected to generate 40.95 times less return on investment than Chase. In addition to that, Koppers Holdings is 1.4 times more volatile than Chase. It trades about 0.0 of its total potential returns per unit of risk. Chase is currently generating about 0.16 per unit of volatility. If you would invest 9,473 in Chase on November 2, 2024 and sell it today you would earn a total of 3,103 from holding Chase or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Koppers Holdings vs. Chase
Performance |
| Timeline |
| Koppers Holdings |
| Chase |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Koppers Holdings and Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koppers Holdings and Chase
The main advantage of trading using opposite Koppers Holdings and Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koppers Holdings 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.| Koppers Holdings vs. H B Fuller | Koppers Holdings vs. Minerals Technologies | Koppers Holdings vs. Quaker Chemical | Koppers Holdings vs. Oil Dri |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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