Correlation Between STMicroelectronics and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics and Credit Acceptance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining STMicroelectronics and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV and Credit Acceptance, you can compare the effects of market volatilities on STMicroelectronics and Credit Acceptance 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 STMicroelectronics with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and Credit Acceptance.
Diversification Opportunities for STMicroelectronics and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STMicroelectronics and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and STMicroelectronics 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 STMicroelectronics NV are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and Credit Acceptance go up and down completely randomly.
Pair Corralation between STMicroelectronics and Credit Acceptance
If you would invest 32,500 in Credit Acceptance on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMicroelectronics NV vs. Credit Acceptance
Performance |
| Timeline |
| STMicroelectronics |
| Credit Acceptance |
STMicroelectronics and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMicroelectronics and Credit Acceptance
The main advantage of trading using opposite STMicroelectronics and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| STMicroelectronics vs. Zoom Video Communications | STMicroelectronics vs. Apartment Investment and | STMicroelectronics vs. Charter Communications | STMicroelectronics vs. Telecomunicaes Brasileiras SA |
| Credit Acceptance vs. Prudential Financial | Credit Acceptance vs. Deutsche Bank Aktiengesellschaft | Credit Acceptance vs. Hospital Mater Dei | Credit Acceptance vs. salesforce inc |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |