Correlation Between Stepan and 743315AJ2
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and PROGRESSIVE P OH, you can compare the effects of market volatilities on Stepan and 743315AJ2 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 743315AJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and 743315AJ2.
Diversification Opportunities for Stepan and 743315AJ2
Good diversification
The 3 months correlation between Stepan and 743315AJ2 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and PROGRESSIVE P OH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROGRESSIVE P OH 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 743315AJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROGRESSIVE P OH has no effect on the direction of Stepan i.e., Stepan and 743315AJ2 go up and down completely randomly.
Pair Corralation between Stepan and 743315AJ2
Considering the 90-day investment horizon Stepan Company is expected to generate 3.36 times more return on investment than 743315AJ2. However, Stepan is 3.36 times more volatile than PROGRESSIVE P OH. It trades about 0.13 of its potential returns per unit of risk. PROGRESSIVE P OH is currently generating about 0.25 per unit of risk. If you would invest 7,246 in Stepan Company on September 3, 2024 and sell it today you would earn a total of 444.00 from holding Stepan Company or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
Stepan Company vs. PROGRESSIVE P OH
Performance |
| Timeline |
| Stepan Company |
| PROGRESSIVE P OH |
Stepan and 743315AJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and 743315AJ2
The main advantage of trading using opposite Stepan and 743315AJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, 743315AJ2 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 743315AJ2 will offset losses from the drop in 743315AJ2's long position.The idea behind Stepan Company and PROGRESSIVE P OH 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.| 743315AJ2 vs. Boyd Gaming | 743315AJ2 vs. Sensient Technologies | 743315AJ2 vs. Stepan Company | 743315AJ2 vs. Dominos Pizza |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |