Correlation Between C3 Ai and Idemitsu Kosan

Can any of the company-specific risk be diversified away by investing in both C3 Ai and Idemitsu Kosan 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 C3 Ai and Idemitsu Kosan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and Idemitsu Kosan Co, you can compare the effects of market volatilities on C3 Ai and Idemitsu Kosan 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 C3 Ai with a short position of Idemitsu Kosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and Idemitsu Kosan.

Diversification Opportunities for C3 Ai and Idemitsu Kosan

-0.19

Correlation Coefficient

C3 Ai  Idemitsu Kosan

Good diversification

The 3 months correlation between C3 Ai and Idemitsu is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and Idemitsu Kosan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idemitsu Kosan and C3 Ai 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 C3 Ai Inc are associated (or correlated) with Idemitsu Kosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idemitsu Kosan has no effect on the direction of C3 Ai i.e., C3 Ai and Idemitsu Kosan go up and down completely randomly.

Pair Corralation between C3 Ai and Idemitsu Kosan

Allowing for the 90-day total investment horizon C3 Ai Inc is expected to under-perform the Idemitsu Kosan. In addition to that, C3 Ai is 1.27 times more volatile than Idemitsu Kosan Co. It trades about -0.19 of its total potential returns per unit of risk. Idemitsu Kosan Co is currently generating about 0.12 per unit of volatility. If you would invest  1,239  in Idemitsu Kosan Co on December 19, 2024 and sell it today you would earn a total of  241.00  from holding Idemitsu Kosan Co or generate 19.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

C3 Ai Inc  vs.  Idemitsu Kosan Co

C3 Ai Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days C3 Ai Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Idemitsu Kosan

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Idemitsu Kosan Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Idemitsu Kosan showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C3 Ai and Idemitsu Kosan

The main advantage of trading using opposite C3 Ai and Idemitsu Kosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai position performs unexpectedly, Idemitsu Kosan 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 Idemitsu Kosan will offset losses from the drop in Idemitsu Kosan's long position.

The idea behind C3 Ai Inc and Idemitsu Kosan Co 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.