Correlation Between ASP Isotopes and Koppers Holdings

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

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

Diversification Opportunities for ASP Isotopes and Koppers Holdings

-0.41

Correlation Coefficient

ASP Isotopes  Koppers Holdings

Very good diversification

The 3 months correlation between ASP and Koppers is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ASP Isotopes Common and Koppers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koppers Holdings and ASP Isotopes 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 ASP Isotopes Common are associated (or correlated) with Koppers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koppers Holdings has no effect on the direction of ASP Isotopes i.e., ASP Isotopes and Koppers Holdings go up and down completely randomly.

Pair Corralation between ASP Isotopes and Koppers Holdings

Given the investment horizon of 90 days ASP Isotopes Common is expected to under-perform the Koppers Holdings. In addition to that, ASP Isotopes is 3.89 times more volatile than Koppers Holdings. It trades about -0.02 of its total potential returns per unit of risk. Koppers Holdings is currently generating about -0.01 per unit of volatility. If you would invest  2,859  in Koppers Holdings on September 8, 2025 and sell it today you would lose (58.00) from holding Koppers Holdings or give up 2.03% of portfolio value over 90 days.

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

ASP Isotopes Common  vs.  Koppers Holdings

ASP Isotopes Common

Risk-Adjusted Performance

Weakest

Over the last 90 days ASP Isotopes Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Koppers Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Koppers Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Koppers Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ASP Isotopes and Koppers Holdings

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

The idea behind ASP Isotopes Common and Koppers Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.