Correlation Between CHRYSALIS INVESTMENTS and Stag Industrial

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

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

Diversification Opportunities for CHRYSALIS INVESTMENTS and Stag Industrial

0.73

Correlation Coefficient

CHRYSALIS INVESTMENTS  Stag Industrial

Poor diversification

The 3 months correlation between CHRYSALIS and Stag is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and Stag Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stag Industrial and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with Stag Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stag Industrial has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and Stag Industrial go up and down completely randomly.

Pair Corralation between CHRYSALIS INVESTMENTS and Stag Industrial

Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 0.81 times more return on investment than Stag Industrial. However, CHRYSALIS INVESTMENTS LTD is 1.23 times less risky than Stag Industrial. It trades about 0.21 of its potential returns per unit of risk. Stag Industrial is currently generating about 0.09 per unit of risk. If you would invest  106.00  in CHRYSALIS INVESTMENTS LTD on April 20, 2025 and sell it today you would earn a total of  18.00  from holding CHRYSALIS INVESTMENTS LTD or generate 16.98% return on investment over 90 days.

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

CHRYSALIS INVESTMENTS LTD  vs.  Stag Industrial

CHRYSALIS INVESTMENTS LTD

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CHRYSALIS INVESTMENTS LTD are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CHRYSALIS INVESTMENTS reported solid returns over the last few months and may actually be approaching a breakup point.

Stag Industrial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stag Industrial are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Stag Industrial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CHRYSALIS INVESTMENTS and Stag Industrial

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

The idea behind CHRYSALIS INVESTMENTS LTD and Stag Industrial 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.