Correlation Between EVONIK INDUSTRIES and SGL CARBON

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

Specify exactly 2 symbols:

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

Diversification Opportunities for EVONIK INDUSTRIES and SGL CARBON

0.0
  Correlation Coefficient
EVONIK INDUSTRIES
SGL CARBON SE

Pay attention - limited upside

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

Pair Corralation between EVONIK INDUSTRIES and SGL CARBON

If you would invest (100.00)  in SGL CARBON SE on April 27, 2021 and sell it today you would earn a total of  100.00  from holding SGL CARBON SE 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.  SGL CARBON SE 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.
SGL CARBON SE 
 SGL CARBON Performance
0 of 100
Over the last 90 days SGL CARBON SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SGL CARBON is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

EVONIK INDUSTRIES and SGL CARBON Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with EVONIK INDUSTRIES and SGL CARBON

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

EVONIK INDUSTRIES NA

Pair trading matchups for EVONIK INDUSTRIES

The idea behind EVONIK INDUSTRIES NA and SGL CARBON SE 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.

SGL CARBON SE

Pair trading matchups for SGL CARBON

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Equity Search
Search for activelly traded equities including funds and ETFs from over 30 global markets
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go