Correlation Between Clariant and Corbion NV

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

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

Diversification Opportunities for Clariant and Corbion NV

0.48

Correlation Coefficient

Clariant  Corbion NV

Very weak diversification

The 3 months correlation between Clariant and Corbion is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Clariant AG and Corbion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbion NV and Clariant 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 Clariant AG are associated (or correlated) with Corbion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbion NV has no effect on the direction of Clariant i.e., Clariant and Corbion NV go up and down completely randomly.

Pair Corralation between Clariant and Corbion NV

Assuming the 90 days trading horizon Clariant is expected to generate 1.2 times less return on investment than Corbion NV. In addition to that, Clariant is 1.41 times more volatile than Corbion NV. It trades about 0.05 of its total potential returns per unit of risk. Corbion NV is currently generating about 0.09 per unit of volatility. If you would invest  1,695  in Corbion NV on April 22, 2025 and sell it today you would earn a total of  126.00  from holding Corbion NV or generate 7.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Clariant AG  vs.  Corbion NV

Clariant AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Clariant AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Clariant may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Corbion NV

Risk-Adjusted Performance

OK

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

Pair Trading with Clariant and Corbion NV

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

The idea behind Clariant AG and Corbion NV 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.