Correlation Between JC Chemical and Fantagio Corp

Can any of the company-specific risk be diversified away by investing in both JC Chemical and Fantagio Corp 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 JC Chemical and Fantagio Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JC Chemical Co and Fantagio Corp, you can compare the effects of market volatilities on JC Chemical and Fantagio Corp 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 JC Chemical with a short position of Fantagio Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Chemical and Fantagio Corp.

Diversification Opportunities for JC Chemical and Fantagio Corp

0.0

Correlation Coefficient

JC Chemical  Fantagio Corp

Pay attention - limited upside

The 3 months correlation between 137950 and Fantagio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JC Chemical Co and Fantagio Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantagio Corp and JC Chemical 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 JC Chemical Co are associated (or correlated) with Fantagio Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantagio Corp has no effect on the direction of JC Chemical i.e., JC Chemical and Fantagio Corp go up and down completely randomly.

Pair Corralation between JC Chemical and Fantagio Corp

If you would invest  375,000  in JC Chemical Co on December 25, 2024 and sell it today you would earn a total of  19,000  from holding JC Chemical Co or generate 5.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.79%
Values	Daily Returns

JC Chemical Co  vs.  Fantagio Corp

JC Chemical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JC Chemical Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, JC Chemical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Fantagio Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fantagio Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fantagio Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JC Chemical and Fantagio Corp

The main advantage of trading using opposite JC Chemical and Fantagio Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Chemical position performs unexpectedly, Fantagio Corp 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 Fantagio Corp will offset losses from the drop in Fantagio Corp's long position.

The idea behind JC Chemical Co and Fantagio Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.