Correlation Between Chemours and AdvanSix

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

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

Diversification Opportunities for Chemours and AdvanSix

-0.32

Correlation Coefficient

Chemours  AdvanSix

Very good diversification

The 3 months correlation between Chemours and AdvanSix is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and AdvanSix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvanSix and Chemours 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 Chemours Co are associated (or correlated) with AdvanSix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvanSix has no effect on the direction of Chemours i.e., Chemours and AdvanSix go up and down completely randomly.

Pair Corralation between Chemours and AdvanSix

Allowing for the 90-day total investment horizon Chemours Co is expected to generate 1.91 times more return on investment than AdvanSix. However, Chemours is 1.91 times more volatile than AdvanSix. It trades about 0.0 of its potential returns per unit of risk. AdvanSix is currently generating about -0.11 per unit of risk. If you would invest  1,200  in Chemours Co on May 4, 2025 and sell it today you would lose (50.00) from holding Chemours Co or give up 4.17% of portfolio value over 90 days.

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

Chemours Co  vs.  AdvanSix

Chemours

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chemours Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Chemours is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

AdvanSix

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvanSix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Chemours and AdvanSix

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

The idea behind Chemours Co and AdvanSix 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.