Correlation Between BRENNTAG and WACKER CHEMIE

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

Specify exactly 2 symbols:

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

Diversification Opportunities for BRENNTAG and WACKER CHEMIE

0.0
  Correlation Coefficient
BRENNTAG SE NA
WACKER CHEMIE O

Pay attention - limited upside

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

Pair Corralation between BRENNTAG and WACKER CHEMIE

If you would invest (100.00)  in WACKER CHEMIE O on April 30, 2021 and sell it today you would earn a total of  100.00  from holding WACKER CHEMIE O or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BRENNTAG SE NA O N  vs.  WACKER CHEMIE O N

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

BRENNTAG and WACKER CHEMIE Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BRENNTAG and WACKER CHEMIE

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

BRENNTAG SE NA

Pair trading matchups for BRENNTAG

The idea behind BRENNTAG SE NA and WACKER CHEMIE O 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.

WACKER CHEMIE O

Pair trading matchups for WACKER CHEMIE

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go