Correlation Between FLUOR and Stepan
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By analyzing existing cross correlation between FLUOR P NEW and Stepan Company, you can compare the effects of market volatilities on FLUOR and Stepan 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 FLUOR with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLUOR and Stepan.
Diversification Opportunities for FLUOR and Stepan
Very good diversification
The 3 months correlation between FLUOR and Stepan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding FLUOR P NEW and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and FLUOR 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 FLUOR P NEW are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of FLUOR i.e., FLUOR and Stepan go up and down completely randomly.
Pair Corralation between FLUOR and Stepan
Assuming the 90 days trading horizon FLUOR P NEW is expected to under-perform the Stepan. But the bond apears to be less risky and, when comparing its historical volatility, FLUOR P NEW is 2.07 times less risky than Stepan. The bond trades about -0.17 of its potential returns per unit of risk. The Stepan Company is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7,252 in Stepan Company on September 2, 2024 and sell it today you would earn a total of 438.00 from holding Stepan Company or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FLUOR P NEW vs. Stepan Company
Performance |
| Timeline |
| FLUOR P NEW |
| Stepan Company |
FLUOR and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLUOR and Stepan
The main advantage of trading using opposite FLUOR and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLUOR position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| FLUOR vs. Stepan Company | FLUOR vs. Canlan Ice Sports | FLUOR vs. Academy Sports Outdoors | FLUOR vs. Hooker Furniture |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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