Correlation Between COVESTRO and CROPENERGIES

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

Specify exactly 2 symbols:

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

Diversification Opportunities for COVESTRO and CROPENERGIES

0.0
  Correlation Coefficient
COVESTRO AG O
CROPENERGIES AG

Pay attention - limited upside

The 3 months correlation between COVESTRO and CROPENERGIES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COVESTRO AG O N and CROPENERGIES AG in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CROPENERGIES AG and COVESTRO 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 COVESTRO AG O are associated (or correlated) with CROPENERGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CROPENERGIES AG has no effect on the direction of COVESTRO i.e., COVESTRO and CROPENERGIES go up and down completely randomly.

Pair Corralation between COVESTRO and CROPENERGIES

If you would invest (100.00)  in CROPENERGIES AG on April 27, 2021 and sell it today you would earn a total of  100.00  from holding CROPENERGIES AG or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

COVESTRO AG O N  vs.  CROPENERGIES AG

 Performance (%) 
      Timeline 
COVESTRO AG O 
 COVESTRO Performance
0 of 100
Over the last 90 days COVESTRO AG O has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, COVESTRO is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
CROPENERGIES AG 
 CROPENERGIES Performance
0 of 100
Over the last 90 days CROPENERGIES AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CROPENERGIES is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

COVESTRO and CROPENERGIES Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with COVESTRO and CROPENERGIES

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

COVESTRO AG O

Pair trading matchups for COVESTRO

The idea behind COVESTRO AG O and CROPENERGIES AG 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.

CROPENERGIES AG

Pair trading matchups for CROPENERGIES

Check out your portfolio center. 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Fund Screener
Find activelly-traded funds from around the world traded on over 30 global exchanges
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
CEO Directory
Screen CEOs from public companies around the world
Go