Correlation Between Celanese and ASP Isotopes

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

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

Diversification Opportunities for Celanese and ASP Isotopes

0.68

Correlation Coefficient

Celanese  ASP Isotopes

Poor diversification

The 3 months correlation between Celanese and ASP is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Celanese and ASP Isotopes Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASP Isotopes Common and Celanese 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 Celanese are associated (or correlated) with ASP Isotopes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASP Isotopes Common has no effect on the direction of Celanese i.e., Celanese and ASP Isotopes go up and down completely randomly.

Pair Corralation between Celanese and ASP Isotopes

Allowing for the 90-day total investment horizon Celanese is expected to generate 3.1 times less return on investment than ASP Isotopes. But when comparing it to its historical volatility, Celanese is 2.06 times less risky than ASP Isotopes. It trades about 0.1 of its potential returns per unit of risk. ASP Isotopes Common is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  583.00  in ASP Isotopes Common on May 2, 2025 and sell it today you would earn a total of  358.00  from holding ASP Isotopes Common or generate 61.41% return on investment over 90 days.

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

Celanese  vs.  ASP Isotopes Common

Celanese

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Celanese are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Celanese exhibited solid returns over the last few months and may actually be approaching a breakup point.

ASP Isotopes Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ASP Isotopes Common are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, ASP Isotopes demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celanese and ASP Isotopes

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

The idea behind Celanese and ASP Isotopes Common 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.