Correlation Between Stepan and 46272EAA1
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By analyzing existing cross correlation between Stepan Company and IPHS 875 15 FEB 26, you can compare the effects of market volatilities on Stepan and 46272EAA1 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 46272EAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 46272EAA1.
Diversification Opportunities for Stepan and 46272EAA1
Modest diversification
The 3 months correlation between Stepan and 46272EAA1 is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and IPHS 875 15 FEB 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPHS 875 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 46272EAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPHS 875 15 has no effect on the direction of Stepan i.e., Stepan and 46272EAA1 go up and down completely randomly.
Pair Corralation between Stepan and 46272EAA1
Considering the 90-day investment horizon Stepan Company is expected to under-perform the 46272EAA1. But the stock apears to be less risky and, when comparing its historical volatility, Stepan Company is 1.31 times less risky than 46272EAA1. The stock trades about -0.03 of its potential returns per unit of risk. The IPHS 875 15 FEB 26 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,675 in IPHS 875 15 FEB 26 on September 14, 2024 and sell it today you would earn a total of 195.00 from holding IPHS 875 15 FEB 26 or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.16% |
| Values | Daily Returns |
Stepan Company vs. IPHS 875 15 FEB 26
Performance |
| Timeline |
| Stepan Company |
| IPHS 875 15 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stepan and 46272EAA1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 46272EAA1
The main advantage of trading using opposite Stepan and 46272EAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 46272EAA1 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 46272EAA1 will offset losses from the drop in 46272EAA1's long position.| Stepan vs. LyondellBasell Industries NV | Stepan vs. Cabot | Stepan vs. Westlake Chemical | Stepan vs. Air Products and |
| 46272EAA1 vs. Integral Ad Science | 46272EAA1 vs. Stepan Company | 46272EAA1 vs. Avient Corp | 46272EAA1 vs. BOS Better Online |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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