Correlation Analysis Between Chemours and DOW

This module allows you to analyze existing cross correlation between Chemours Company and DOW. You can compare the effects of market volatilities on Chemours and DOW 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 Chemours with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Chemours and DOW.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Chemours Company  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Chemours Company is expected to under-perform the DOW. In addition to that, Chemours is 4.61 times more volatile than DOW. It trades about -0.03 of its total potential returns per unit of risk. DOW is currently generating about -0.02 per unit of volatility. If you would invest  2,717,190  in DOW on September 18, 2019 and sell it today you would lose (40,170)  from holding DOW or give up 1.48% of portfolio value over 30 days.

Pair Corralation between Chemours and DOW

0.87
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chemours and DOW

Chemours Company diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chemours Company and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Chemours 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 Chemours Company are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Chemours i.e. Chemours and DOW go up and down completely randomly.
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See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.


 
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