Correlation Between Calumet and Inter Parfums
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By analyzing existing cross correlation between Calumet Specialty Products and Inter Parfums, you can compare the effects of market volatilities on Calumet and Inter Parfums 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 Calumet with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet and Inter Parfums.
Diversification Opportunities for Calumet and Inter Parfums
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calumet and Inter is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and Calumet 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 Calumet Specialty Products are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Calumet i.e., Calumet and Inter Parfums go up and down completely randomly.
Pair Corralation between Calumet and Inter Parfums
Assuming the 90 days trading horizon Calumet Specialty Products is expected to generate 31.84 times more return on investment than Inter Parfums. However, Calumet is 31.84 times more volatile than Inter Parfums. It trades about 0.06 of its potential returns per unit of risk. Inter Parfums is currently generating about 0.03 per unit of risk. 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 Together |
| Strength | Weak |
| Accuracy | 45.89% |
| Values | Daily Returns |
Calumet Specialty Products vs. Inter Parfums
Performance |
| Timeline |
| Calumet Specialty |
| Inter Parfums |
Calumet and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calumet and Inter Parfums
The main advantage of trading using opposite Calumet and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Calumet vs. ChampionX | Calumet vs. Highway Holdings Limited | Calumet vs. Primoris Services | Calumet vs. Weibo Corp |
| Inter Parfums vs. Highway Holdings Limited | Inter Parfums vs. QCR Holdings | Inter Parfums vs. Partner Communications | Inter Parfums vs. Acumen Pharmaceuticals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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