Correlation Between Ashland Global and Ingevity Corp

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

By analyzing existing cross correlation between Ashland Global Holdings and Ingevity Corp, you can compare the effects of market volatilities on Ashland Global and Ingevity Corp 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 Ashland Global with a short position of Ingevity Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashland Global and Ingevity Corp.

Diversification Opportunities for Ashland Global and Ingevity Corp

0.49

Correlation Coefficient

Ashland Global  Ingevity Corp

Very weak diversification

The 3 months correlation between Ashland and Ingevity is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ashland Global Holdings and Ingevity Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingevity Corp and Ashland Global 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 Ashland Global Holdings are associated (or correlated) with Ingevity Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingevity Corp has no effect on the direction of Ashland Global i.e., Ashland Global and Ingevity Corp go up and down completely randomly.

Pair Corralation between Ashland Global and Ingevity Corp

Considering the 90-day investment horizon Ashland Global Holdings is expected to generate 0.97 times more return on investment than Ingevity Corp. However, Ashland Global Holdings is 1.04 times less risky than Ingevity Corp. It trades about 0.06 of its potential returns per unit of risk. Ingevity Corp is currently generating about 0.03 per unit of risk. If you would invest  4,775  in Ashland Global Holdings on May 6, 2025 and sell it today you would earn a total of  301.00  from holding Ashland Global Holdings or generate 6.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ashland Global Holdings  vs.  Ingevity Corp

Ashland Global Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ashland Global Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Ashland Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ingevity Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ingevity Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ingevity Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ashland Global and Ingevity Corp

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

The idea behind Ashland Global Holdings and Ingevity Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.