Correlation Between Stepan and FEDEX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and FEDEX P 455, you can compare the effects of market volatilities on Stepan and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and FEDEX.
Diversification Opportunities for Stepan and FEDEX
Good diversification
The 3 months correlation between Stepan and FEDEX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and FEDEX P 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 455 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 455 has no effect on the direction of Stepan i.e., Stepan and FEDEX go up and down completely randomly.
Pair Corralation between Stepan and FEDEX
Considering the 90-day investment horizon Stepan Company is expected to generate 0.7 times more return on investment than FEDEX. However, Stepan Company is 1.43 times less risky than FEDEX. It trades about -0.07 of its potential returns per unit of risk. FEDEX P 455 is currently generating about -0.1 per unit of risk. If you would invest 7,668 in Stepan Company on September 13, 2024 and sell it today you would lose (141.50) from holding Stepan Company or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stepan Company vs. FEDEX P 455
Performance |
| Timeline |
| Stepan Company |
| FEDEX P 455 |
Stepan and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and FEDEX
The main advantage of trading using opposite Stepan and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Stepan vs. LyondellBasell Industries NV | Stepan vs. International Flavors Fragrances | Stepan vs. Cabot | Stepan vs. Westlake Chemical |
| FEDEX vs. Flexible Solutions International | FEDEX vs. Zane Interactive Publishing | FEDEX vs. Hudson Technologies | FEDEX vs. Four Seasons Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |