Correlation Between NOF and Clariant

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

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

Diversification Opportunities for NOF and Clariant

0.0

Correlation Coefficient

NOF  Clariant

Pay attention - limited upside

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

Pair Corralation between NOF and Clariant

If you would invest  1,896  in NOF Corporation on August 19, 2025 and sell it today you would earn a total of  0.00  from holding NOF Corporation or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

NOF Corp.  vs.  Clariant AG

NOF Corporation

Risk-Adjusted Performance

Weakest

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

Clariant AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Clariant AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile 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 NOF and Clariant

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

The idea behind NOF Corporation and Clariant AG 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.