Correlation Between Univar and Celanese
Can any of the company-specific risk be diversified away by investing in both Univar and Celanese 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 Univar and Celanese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univar Inc and Celanese, you can compare the effects of market volatilities on Univar and Celanese 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 Univar with a short position of Celanese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univar and Celanese.
Diversification Opportunities for Univar and Celanese
Excellent diversification
The 3 months correlation between Univar and Celanese is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Univar Inc and Celanese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celanese and Univar 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 Univar Inc are associated (or correlated) with Celanese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celanese has no effect on the direction of Univar i.e., Univar and Celanese go up and down completely randomly.
Pair Corralation between Univar and Celanese
If you would invest 3,593 in Univar Inc on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Univar Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Univar Inc vs. Celanese
Performance |
| Timeline |
| Univar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Celanese |
Univar and Celanese Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univar and Celanese
The main advantage of trading using opposite Univar and Celanese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univar position performs unexpectedly, Celanese 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 Celanese will offset losses from the drop in Celanese's long position.| Univar vs. Valhi Inc | Univar vs. Huntsman | Univar vs. Lsb Industries | Univar vs. Westlake Chemical Partners |
| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Valhi 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |