Correlation Between Ingevity Corp and Core Molding
Can any of the company-specific risk be diversified away by investing in both Ingevity Corp and Core Molding 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 Ingevity Corp and Core Molding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingevity Corp and Core Molding Technologies, you can compare the effects of market volatilities on Ingevity Corp and Core Molding 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 Ingevity Corp with a short position of Core Molding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingevity Corp and Core Molding.
Diversification Opportunities for Ingevity Corp and Core Molding
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ingevity and Core is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ingevity Corp and Core Molding Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Molding Technologies and Ingevity Corp 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 Ingevity Corp are associated (or correlated) with Core Molding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Molding Technologies has no effect on the direction of Ingevity Corp i.e., Ingevity Corp and Core Molding go up and down completely randomly.
Pair Corralation between Ingevity Corp and Core Molding
Given the investment horizon of 90 days Ingevity Corp is expected to generate 1.85 times more return on investment than Core Molding. However, Ingevity Corp is 1.85 times more volatile than Core Molding Technologies. It trades about 0.25 of its potential returns per unit of risk. Core Molding Technologies is currently generating about -0.15 per unit of risk. If you would invest 3,954 in Ingevity Corp on November 3, 2024 and sell it today you would earn a total of 629.00 from holding Ingevity Corp or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingevity Corp vs. Core Molding Technologies
Performance |
| Timeline |
| Ingevity Corp |
| Core Molding Technologies |
Ingevity Corp and Core Molding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingevity Corp and Core Molding
The main advantage of trading using opposite Ingevity Corp and Core Molding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingevity Corp position performs unexpectedly, Core Molding 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 Core Molding will offset losses from the drop in Core Molding's long position.| Ingevity Corp vs. H B Fuller | Ingevity Corp vs. Minerals Technologies | Ingevity Corp vs. Quaker Chemical | Ingevity Corp vs. Oil Dri |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |