Correlation Between Chemours and Anterix

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

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

Diversification Opportunities for Chemours and Anterix

-0.19

Correlation Coefficient

Chemours  Anterix

Good diversification

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

Pair Corralation between Chemours and Anterix

Allowing for the 90-day total investment horizon Chemours is expected to generate 2.08 times less return on investment than Anterix. In addition to that, Chemours is 1.84 times more volatile than Anterix. It trades about 0.01 of its total potential returns per unit of risk. Anterix is currently generating about 0.05 per unit of volatility. If you would invest  3,307  in Anterix on September 18, 2024 and sell it today you would earn a total of  50.00  from holding Anterix or generate 1.51% return on investment over 90 days.

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

Chemours Co  vs.  Anterix

Chemours

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chemours Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Chemours may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Chemours and Anterix

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

The idea behind Chemours Co and Anterix 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.