Correlation Between Chemours and ATS
Can any of the company-specific risk be diversified away by investing in both Chemours and ATS 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 ATS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and ATS Corporation, you can compare the effects of market volatilities on Chemours and ATS 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 ATS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and ATS.
Diversification Opportunities for Chemours and ATS
Average diversification
The 3 months correlation between Chemours and ATS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation 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 ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Chemours i.e., Chemours and ATS go up and down completely randomly.
Pair Corralation between Chemours and ATS
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the ATS. In addition to that, Chemours is 1.31 times more volatile than ATS Corporation. It trades about -0.08 of its total potential returns per unit of risk. ATS Corporation is currently generating about -0.07 per unit of volatility. If you would invest 3,002 in ATS Corporation on December 27, 2024 and sell it today you would lose (318.00) from holding ATS Corporation or give up 10.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chemours Co vs. ATS Corp.
Performance |
Timeline |
Chemours |
ATS Corporation |
Chemours and ATS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chemours and ATS
The main advantage of trading using opposite Chemours and ATS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, ATS 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 ATS will offset losses from the drop in ATS's long position.Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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