Correlation Between Viskase Companies and Olin

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

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

Diversification Opportunities for Viskase Companies and Olin

0.0

Correlation Coefficient

Viskase Companies  Olin

Pay attention - limited upside

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

Pair Corralation between Viskase Companies and Olin

If you would invest (100.00) in Viskase Companies on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Viskase Companies 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

Viskase Companies  vs.  Olin Corp.

Viskase Companies

Risk-Adjusted Performance

Very Weak

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

Olin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Olin Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Viskase Companies and Olin

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

The idea behind Viskase Companies and Olin Corporation 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.