Correlation Between Stepan and 26439XAH6
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By analyzing existing cross correlation between Stepan Company and Duke Energy Field, you can compare the effects of market volatilities on Stepan and 26439XAH6 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 26439XAH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 26439XAH6.
Diversification Opportunities for Stepan and 26439XAH6
Very good diversification
The 3 months correlation between Stepan and 26439XAH6 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and Duke Energy Field in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy Field 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 26439XAH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy Field has no effect on the direction of Stepan i.e., Stepan and 26439XAH6 go up and down completely randomly.
Pair Corralation between Stepan and 26439XAH6
Considering the 90-day investment horizon Stepan Company is expected to under-perform the 26439XAH6. But the stock apears to be less risky and, when comparing its historical volatility, Stepan Company is 68.19 times less risky than 26439XAH6. The stock trades about -0.03 of its potential returns per unit of risk. The Duke Energy Field is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,003 in Duke Energy Field on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Duke Energy Field or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.0% |
| Values | Daily Returns |
Stepan Company vs. Duke Energy Field
Performance |
| Timeline |
| Stepan Company |
| Duke Energy Field |
Stepan and 26439XAH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 26439XAH6
The main advantage of trading using opposite Stepan and 26439XAH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 26439XAH6 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 26439XAH6 will offset losses from the drop in 26439XAH6's long position.The idea behind Stepan Company and Duke Energy Field 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.| 26439XAH6 vs. AEP TEX INC | 26439XAH6 vs. US BANK NATIONAL | 26439XAH6 vs. MetLife | 26439XAH6 vs. Jackson Financial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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