Correlation Between CHEMICAL INDUSTRIES and LEWAG HOLDING
Can any of the company-specific risk be diversified away by investing in both CHEMICAL INDUSTRIES and LEWAG HOLDING 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 CHEMICAL INDUSTRIES and LEWAG HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHEMICAL INDUSTRIES and LEWAG HOLDING AG, you can compare the effects of market volatilities on CHEMICAL INDUSTRIES and LEWAG HOLDING 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 CHEMICAL INDUSTRIES with a short position of LEWAG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEMICAL INDUSTRIES and LEWAG HOLDING.
Diversification Opportunities for CHEMICAL INDUSTRIES and LEWAG HOLDING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHEMICAL and LEWAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHEMICAL INDUSTRIES and LEWAG HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEWAG HOLDING AG and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES are associated (or correlated) with LEWAG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEWAG HOLDING AG has no effect on the direction of CHEMICAL INDUSTRIES i.e., CHEMICAL INDUSTRIES and LEWAG HOLDING go up and down completely randomly.
Pair Corralation between CHEMICAL INDUSTRIES and LEWAG HOLDING
If you would invest 1,050 in LEWAG HOLDING AG on November 3, 2024 and sell it today you would earn a total of 370.00 from holding LEWAG HOLDING AG or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CHEMICAL INDUSTRIES vs. LEWAG HOLDING AG
Performance |
| Timeline |
| CHEMICAL INDUSTRIES |
| LEWAG HOLDING AG |
CHEMICAL INDUSTRIES and LEWAG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEMICAL INDUSTRIES and LEWAG HOLDING
The main advantage of trading using opposite CHEMICAL INDUSTRIES and LEWAG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEMICAL INDUSTRIES position performs unexpectedly, LEWAG HOLDING 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 LEWAG HOLDING will offset losses from the drop in LEWAG HOLDING's long position.| CHEMICAL INDUSTRIES vs. alstria office REIT AG | CHEMICAL INDUSTRIES vs. JD SPORTS FASH | CHEMICAL INDUSTRIES vs. KENEDIX OFFICE INV | CHEMICAL INDUSTRIES vs. ADDUS HOMECARE |
| LEWAG HOLDING vs. Zoom Video Communications | LEWAG HOLDING vs. AEGEAN AIRLINES | LEWAG HOLDING vs. Citic Telecom International | LEWAG HOLDING vs. Chunghwa Telecom Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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