Correlation Between Chase and Celanese

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Chase and Celanese 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 Chase and Celanese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase and Celanese, you can compare the effects of market volatilities on Chase and Celanese 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 Chase with a short position of Celanese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase and Celanese.

Diversification Opportunities for Chase and Celanese

0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Chase and Celanese is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chase and Celanese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celanese and Chase 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 Chase are associated (or correlated) with Celanese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celanese has no effect on the direction of Chase i.e., Chase and Celanese go up and down completely randomly.

Pair Corralation between Chase and Celanese

If you would invest  14,959  in Celanese on December 29, 2023 and sell it today you would earn a total of  2,005  from holding Celanese or generate 13.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Chase  vs.  Celanese

 Performance 
       Timeline  
Chase 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Chase has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Chase is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
Celanese 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Celanese are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Celanese may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Chase and Celanese Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chase and Celanese

The main advantage of trading using opposite Chase and Celanese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase position performs unexpectedly, Celanese 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 Celanese will offset losses from the drop in Celanese's long position.
The idea behind Chase and Celanese 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.
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 the Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments