Correlation Between Core Molding and Chase

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

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

Diversification Opportunities for Core Molding and Chase

-0.72

Correlation Coefficient

Core Molding  Chase

Pay attention - limited upside

The 3 months correlation between Core and Chase is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Core Molding Technologies and Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase and Core Molding 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 Core Molding Technologies are associated (or correlated) with Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase has no effect on the direction of Core Molding i.e., Core Molding and Chase go up and down completely randomly.

Pair Corralation between Core Molding and Chase

If you would invest  1,669  in Core Molding Technologies on September 13, 2024 and sell it today you would lose (72.00) from holding Core Molding Technologies or give up 4.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.8%
Values	Daily Returns

Core Molding Technologies  vs.  Chase

Core Molding Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Core Molding Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Chase

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Core Molding and Chase

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

The idea behind Core Molding Technologies and Chase 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.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.