Correlation Between Stepan and CORNING
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and CORNING INC 585, you can compare the effects of market volatilities on Stepan and CORNING 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 CORNING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and CORNING.
Diversification Opportunities for Stepan and CORNING
Good diversification
The 3 months correlation between Stepan and CORNING is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and CORNING INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNING INC 585 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 CORNING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNING INC 585 has no effect on the direction of Stepan i.e., Stepan and CORNING go up and down completely randomly.
Pair Corralation between Stepan and CORNING
Considering the 90-day investment horizon Stepan Company is expected to generate 1.25 times more return on investment than CORNING. However, Stepan is 1.25 times more volatile than CORNING INC 585. It trades about 0.13 of its potential returns per unit of risk. CORNING INC 585 is currently generating about 0.02 per unit of risk. If you would invest 7,246 in Stepan Company on September 4, 2024 and sell it today you would earn a total of 456.00 from holding Stepan Company or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Stepan Company vs. CORNING INC 585
Performance |
| Timeline |
| Stepan Company |
| CORNING INC 585 |
Stepan and CORNING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and CORNING
The main advantage of trading using opposite Stepan and CORNING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, CORNING 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 CORNING will offset losses from the drop in CORNING's long position.The idea behind Stepan Company and CORNING INC 585 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CORNING vs. Accel Entertainment | CORNING vs. NetSol Technologies | CORNING vs. Data3 Limited | CORNING vs. Infosys Ltd ADR |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |