Correlation Between Stepan and Fold Holdings,

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

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

Diversification Opportunities for Stepan and Fold Holdings,

0.0

Correlation Coefficient

Stepan  Fold Holdings,

Pay attention - limited upside

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

Pair Corralation between Stepan and Fold Holdings,

If you would invest (100.00) in Fold Holdings, Class on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Fold Holdings, Class or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Stepan Company  vs.  Fold Holdings, Class

Stepan Company

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stepan Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Fold Holdings, Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fold Holdings, Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Fold Holdings, is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Stepan and Fold Holdings,

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

The idea behind Stepan Company and Fold Holdings, Class 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.