Correlation Between Clariant and OCI NV

Can any of the company-specific risk be diversified away by investing in both Clariant and OCI 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 OCI 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 OCI NV, you can compare the effects of market volatilities on Clariant and OCI 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 OCI NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clariant and OCI NV.

Diversification Opportunities for Clariant and OCI NV

0.13

Correlation Coefficient

Clariant  OCI NV

Average diversification

The 3 months correlation between Clariant and OCI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Clariant AG and OCI NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI 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 OCI NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI NV has no effect on the direction of Clariant i.e., Clariant and OCI NV go up and down completely randomly.

Pair Corralation between Clariant and OCI NV

Assuming the 90 days trading horizon Clariant is expected to generate 1.86 times less return on investment than OCI NV. In addition to that, Clariant is 1.46 times more volatile than OCI NV. It trades about 0.03 of its total potential returns per unit of risk. OCI NV is currently generating about 0.08 per unit of volatility. If you would invest  712.00  in OCI NV on April 25, 2025 and sell it today you would earn a total of  45.00  from holding OCI NV or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Clariant AG  vs.  OCI 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 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Clariant is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

OCI NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OCI NV are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, OCI NV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Clariant and OCI NV

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

The idea behind Clariant AG and OCI 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..