Correlation Between EVONIK INDUSTRIES and BRENNTAG

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

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

Diversification Opportunities for EVONIK INDUSTRIES and BRENNTAG

0.0
  Correlation Coefficient
EVONIK INDUSTRIES
BRENNTAG SE NA

Pay attention - limited upside

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

Pair Corralation between EVONIK INDUSTRIES and BRENNTAG

If you would invest (100.00)  in BRENNTAG SE NA on May 3, 2021 and sell it today you would earn a total of  100.00  from holding BRENNTAG SE NA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

EVONIK INDUSTRIES NA O N  vs.  BRENNTAG SE NA O N

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

EVONIK INDUSTRIES and BRENNTAG Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with EVONIK INDUSTRIES and BRENNTAG

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

BRENNTAG SE NA

Pair trading matchups for BRENNTAG

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 Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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