Correlation Between Stepan and 48128BAH4
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By analyzing existing cross correlation between Stepan Company and JPM 4, you can compare the effects of market volatilities on Stepan and 48128BAH4 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 48128BAH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 48128BAH4.
Diversification Opportunities for Stepan and 48128BAH4
Good diversification
The 3 months correlation between Stepan and 48128BAH4 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and JPM 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 48128BAH4 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 48128BAH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 48128BAH4 has no effect on the direction of Stepan i.e., Stepan and 48128BAH4 go up and down completely randomly.
Pair Corralation between Stepan and 48128BAH4
Considering the 90-day investment horizon Stepan Company is expected to under-perform the 48128BAH4. In addition to that, Stepan is 1.85 times more volatile than JPM 4. It trades about -0.03 of its total potential returns per unit of risk. JPM 4 is currently generating about 0.02 per unit of volatility. If you would invest 8,592 in JPM 4 on September 3, 2024 and sell it today you would earn a total of 417.00 from holding JPM 4 or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Stepan Company vs. JPM 4
Performance |
| Timeline |
| Stepan Company |
| 48128BAH4 |
Stepan and 48128BAH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 48128BAH4
The main advantage of trading using opposite Stepan and 48128BAH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 48128BAH4 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 48128BAH4 will offset losses from the drop in 48128BAH4's long position.The idea behind Stepan Company and JPM 4 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.| 48128BAH4 vs. Virgin Group Acquisition | 48128BAH4 vs. Stepan Company | 48128BAH4 vs. World Houseware Limited | 48128BAH4 vs. Acme United |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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