Correlation Between ISE Chemicals and Running Fox

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

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

Diversification Opportunities for ISE Chemicals and Running Fox

0.0

Correlation Coefficient

ISE Chemicals  Running Fox

Pay attention - limited upside

The 3 months correlation between ISE and Running is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ISE Chemicals and Running Fox Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Running Fox Resource and ISE Chemicals 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 ISE Chemicals are associated (or correlated) with Running Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Running Fox Resource has no effect on the direction of ISE Chemicals i.e., ISE Chemicals and Running Fox go up and down completely randomly.

Pair Corralation between ISE Chemicals and Running Fox

If you would invest  3,281  in ISE Chemicals on September 1, 2025 and sell it today you would earn a total of  0.00  from holding ISE Chemicals or generate 0.0% return on investment over 90 days.

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

ISE Chemicals  vs.  Running Fox Resource

ISE Chemicals

Risk-Adjusted Performance

Weakest

Over the last 90 days ISE Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, ISE Chemicals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Running Fox Resource

Risk-Adjusted Performance

Weakest

Over the last 90 days Running Fox Resource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ISE Chemicals and Running Fox

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

The idea behind ISE Chemicals and Running Fox Resource 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.