Correlation Between CPH Chemie and S H

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

By analyzing existing cross correlation between CPH Chemie und and S H L, you can compare the effects of market volatilities on CPH Chemie and S H 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 CPH Chemie with a short position of S H. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPH Chemie and S H.

Diversification Opportunities for CPH Chemie and S H

-0.57

Correlation Coefficient

CPH Chemie  S H

Excellent diversification

The 3 months correlation between CPH and SHLTN is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CPH Chemie und and S H L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S H L and CPH Chemie 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 CPH Chemie und are associated (or correlated) with S H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S H L has no effect on the direction of CPH Chemie i.e., CPH Chemie and S H go up and down completely randomly.

Pair Corralation between CPH Chemie and S H

Assuming the 90 days trading horizon CPH Chemie und is expected to generate 0.35 times more return on investment than S H. However, CPH Chemie und is 2.9 times less risky than S H. It trades about 0.15 of its potential returns per unit of risk. S H L is currently generating about -0.01 per unit of risk. If you would invest  6,560  in CPH Chemie und on April 24, 2025 and sell it today you would earn a total of  940.00  from holding CPH Chemie und or generate 14.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

CPH Chemie und  vs.  S H L

CPH Chemie und

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CPH Chemie und are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, CPH Chemie showed solid returns over the last few months and may actually be approaching a breakup point.

S H L

Risk-Adjusted Performance

Very Weak

Over the last 90 days S H L has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, S H is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CPH Chemie and S H

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

The idea behind CPH Chemie und and S H L 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.