Correlation Between Stepan and 29364WBL1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and ETR 475 15 SEP 52, you can compare the effects of market volatilities on Stepan and 29364WBL1 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 29364WBL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 29364WBL1.
Diversification Opportunities for Stepan and 29364WBL1
Good diversification
The 3 months correlation between Stepan and 29364WBL1 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and ETR 475 15 SEP 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETR 475 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 29364WBL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETR 475 15 has no effect on the direction of Stepan i.e., Stepan and 29364WBL1 go up and down completely randomly.
Pair Corralation between Stepan and 29364WBL1
Considering the 90-day investment horizon Stepan Company is expected to under-perform the 29364WBL1. In addition to that, Stepan is 1.46 times more volatile than ETR 475 15 SEP 52. It trades about -0.03 of its total potential returns per unit of risk. ETR 475 15 SEP 52 is currently generating about 0.0 per unit of volatility. If you would invest 9,074 in ETR 475 15 SEP 52 on August 31, 2024 and sell it today you would lose (96.00) from holding ETR 475 15 SEP 52 or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.44% |
| Values | Daily Returns |
Stepan Company vs. ETR 475 15 SEP 52
Performance |
| Timeline |
| Stepan Company |
| ETR 475 15 |
Stepan and 29364WBL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 29364WBL1
The main advantage of trading using opposite Stepan and 29364WBL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 29364WBL1 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 29364WBL1 will offset losses from the drop in 29364WBL1's long position.The idea behind Stepan Company and ETR 475 15 SEP 52 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.| 29364WBL1 vs. SmartStop Self Storage | 29364WBL1 vs. Definitive Healthcare Corp | 29364WBL1 vs. Sapiens International | 29364WBL1 vs. Stepan Company |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |