Correlation Between Steven Madden and Calumet
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By analyzing existing cross correlation between Steven Madden and Calumet Specialty Products, you can compare the effects of market volatilities on Steven Madden and Calumet 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 Steven Madden with a short position of Calumet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and Calumet.
Diversification Opportunities for Steven Madden and Calumet
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steven and Calumet is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and Calumet Specialty Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calumet Specialty and Steven Madden 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 Steven Madden are associated (or correlated) with Calumet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calumet Specialty has no effect on the direction of Steven Madden i.e., Steven Madden and Calumet go up and down completely randomly.
Pair Corralation between Steven Madden and Calumet
Given the investment horizon of 90 days Steven Madden is expected to generate 45.49 times less return on investment than Calumet. But when comparing it to its historical volatility, Steven Madden is 38.4 times less risky than Calumet. It trades about 0.05 of its potential returns per unit of risk. Calumet Specialty Products is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,550 in Calumet Specialty Products on September 3, 2024 and sell it today you would lose (223.00) from holding Calumet Specialty Products or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.89% |
| Values | Daily Returns |
Steven Madden vs. Calumet Specialty Products
Performance |
| Timeline |
| Steven Madden |
| Calumet Specialty |
Steven Madden and Calumet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and Calumet
The main advantage of trading using opposite Steven Madden and Calumet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, Calumet 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 Calumet will offset losses from the drop in Calumet's long position.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| Calumet vs. ChampionX | Calumet vs. Highway Holdings Limited | Calumet vs. Primoris Services | Calumet vs. Weibo Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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