Correlation Between Chemours and 482480AM2

Can any of the company-specific risk be diversified away by investing in both Chemours and 482480AM2 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 482480AM2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chemours Co and KLAC 495 15 JUL 52, you can compare the effects of market volatilities on Chemours and 482480AM2 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 482480AM2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and 482480AM2.

Diversification Opportunities for Chemours and 482480AM2

0.0

Correlation Coefficient

Chemours  482480AM2

Pay attention - limited upside

The 3 months correlation between Chemours and 482480AM2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and KLAC 495 15 JUL 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLAC 495 15 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 482480AM2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLAC 495 15 has no effect on the direction of Chemours i.e., Chemours and 482480AM2 go up and down completely randomly.

Pair Corralation between Chemours and 482480AM2

If you would invest  0.00  in KLAC 495 15 JUL 52 on December 25, 2024 and sell it today you would earn a total of  0.00  from holding KLAC 495 15 JUL 52 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Chemours Co  vs.  KLAC 495 15 JUL 52

Chemours

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chemours Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

KLAC 495 15

Risk-Adjusted Performance

OK

Over the last 90 days KLAC 495 15 JUL 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 482480AM2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Chemours and 482480AM2

The main advantage of trading using opposite Chemours and 482480AM2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, 482480AM2 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 482480AM2 will offset losses from the drop in 482480AM2's long position.

The idea behind Chemours Co and KLAC 495 15 JUL 52 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.