Correlation Between Stepan and 166756AX4
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By analyzing existing cross correlation between Stepan Company and CVX 42 15 OCT 49, you can compare the effects of market volatilities on Stepan and 166756AX4 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 166756AX4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 166756AX4.
Diversification Opportunities for Stepan and 166756AX4
Good diversification
The 3 months correlation between Stepan and 166756AX4 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and CVX 42 15 OCT 49 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVX 42 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 166756AX4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVX 42 15 has no effect on the direction of Stepan i.e., Stepan and 166756AX4 go up and down completely randomly.
Pair Corralation between Stepan and 166756AX4
Considering the 90-day investment horizon Stepan is expected to generate 1.21 times less return on investment than 166756AX4. But when comparing it to its historical volatility, Stepan Company is 1.05 times less risky than 166756AX4. It trades about 0.13 of its potential returns per unit of risk. CVX 42 15 OCT 49 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,343 in CVX 42 15 OCT 49 on September 2, 2024 and sell it today you would earn a total of 174.00 from holding CVX 42 15 OCT 49 or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Stepan Company vs. CVX 42 15 OCT 49
Performance |
| Timeline |
| Stepan Company |
| CVX 42 15 |
Stepan and 166756AX4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 166756AX4
The main advantage of trading using opposite Stepan and 166756AX4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 166756AX4 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 166756AX4 will offset losses from the drop in 166756AX4's long position.| Stepan vs. Linde plc Ordinary | Stepan vs. Air Products and | Stepan vs. Aquagold International | Stepan vs. Thrivent High Yield |
| 166756AX4 vs. Inflection Point Acquisition | 166756AX4 vs. Papaya Growth Opportunity | 166756AX4 vs. Hurco Companies | 166756AX4 vs. SkyWest |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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