Correlation Between Chrysalis Investments and Impax Environmental

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

By analyzing existing cross correlation between Chrysalis Investments and Impax Environmental Markets, you can compare the effects of market volatilities on Chrysalis Investments and Impax Environmental 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 Impax Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chrysalis Investments and Impax Environmental.

Diversification Opportunities for Chrysalis Investments and Impax Environmental

0.91

Correlation Coefficient

Chrysalis Investments  Impax Environmental

Almost no diversification

The 3 months correlation between Chrysalis and Impax is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chrysalis Investments and Impax Environmental Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Environmental 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 are associated (or correlated) with Impax Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Environmental has no effect on the direction of Chrysalis Investments i.e., Chrysalis Investments and Impax Environmental go up and down completely randomly.

Pair Corralation between Chrysalis Investments and Impax Environmental

Assuming the 90 days trading horizon Chrysalis Investments is expected to generate 1.59 times more return on investment than Impax Environmental. However, Chrysalis Investments is 1.59 times more volatile than Impax Environmental Markets. It trades about 0.22 of its potential returns per unit of risk. Impax Environmental Markets is currently generating about 0.27 per unit of risk. If you would invest  9,420  in Chrysalis Investments on April 24, 2025 and sell it today you would earn a total of  1,700  from holding Chrysalis Investments or generate 18.05% return on investment over 90 days.

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

Chrysalis Investments  vs.  Impax Environmental Markets

Chrysalis Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chrysalis Investments are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Chrysalis Investments unveiled solid returns over the last few months and may actually be approaching a breakup point.

Impax Environmental

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Impax Environmental Markets are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Impax Environmental exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chrysalis Investments and Impax Environmental

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

The idea behind Chrysalis Investments and Impax Environmental Markets 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.