Correlation Between Stepan and 122014AH6
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By analyzing existing cross correlation between Stepan Company and COP 82 15 MAR 25, you can compare the effects of market volatilities on Stepan and 122014AH6 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 Stepan with a short position of 122014AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 122014AH6.
Diversification Opportunities for Stepan and 122014AH6
Good diversification
The 3 months correlation between Stepan and 122014AH6 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and COP 82 15 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COP 82 15 and Stepan 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 Stepan Company are associated (or correlated) with 122014AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COP 82 15 has no effect on the direction of Stepan i.e., Stepan and 122014AH6 go up and down completely randomly.
Pair Corralation between Stepan and 122014AH6
Considering the 90-day investment horizon Stepan Company is expected to under-perform the 122014AH6. In addition to that, Stepan is 1.09 times more volatile than COP 82 15 MAR 25. It trades about -0.14 of its total potential returns per unit of risk. COP 82 15 MAR 25 is currently generating about 0.31 per unit of volatility. If you would invest 10,121 in COP 82 15 MAR 25 on September 14, 2024 and sell it today you would earn a total of 202.00 from holding COP 82 15 MAR 25 or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Stepan Company vs. COP 82 15 MAR 25
Performance |
| Timeline |
| Stepan Company |
| COP 82 15 |
Stepan and 122014AH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 122014AH6
The main advantage of trading using opposite Stepan and 122014AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 122014AH6 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 122014AH6 will offset losses from the drop in 122014AH6's long position.| Stepan vs. LyondellBasell Industries NV | Stepan vs. Cabot | Stepan vs. Westlake Chemical | Stepan vs. Air Products and |
| 122014AH6 vs. Merit Medical Systems | 122014AH6 vs. LENSAR Inc | 122014AH6 vs. Teleflex Incorporated | 122014AH6 vs. Sonida Senior Living |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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