Correlation Between NXP Semiconductors and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both NXP Semiconductors and Chemtrade Logistics 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 NXP Semiconductors and Chemtrade Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXP Semiconductors NV and Chemtrade Logistics Income, you can compare the effects of market volatilities on NXP Semiconductors and Chemtrade Logistics 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 NXP Semiconductors with a short position of Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXP Semiconductors and Chemtrade Logistics.
Diversification Opportunities for NXP Semiconductors and Chemtrade Logistics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NXP and Chemtrade is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding NXP Semiconductors NV and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics and NXP Semiconductors 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 NXP Semiconductors NV are associated (or correlated) with Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of NXP Semiconductors i.e., NXP Semiconductors and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between NXP Semiconductors and Chemtrade Logistics
Given the investment horizon of 90 days NXP Semiconductors NV is expected to under-perform the Chemtrade Logistics. In addition to that, NXP Semiconductors is 1.19 times more volatile than Chemtrade Logistics Income. It trades about -0.08 of its total potential returns per unit of risk. Chemtrade Logistics Income is currently generating about 0.1 per unit of volatility. If you would invest 924.00 in Chemtrade Logistics Income on September 4, 2025 and sell it today you would earn a total of 101.00 from holding Chemtrade Logistics Income or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NXP Semiconductors NV vs. Chemtrade Logistics Income
Performance |
| Timeline |
| NXP Semiconductors |
| Chemtrade Logistics |
NXP Semiconductors and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXP Semiconductors and Chemtrade Logistics
The main advantage of trading using opposite NXP Semiconductors and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXP Semiconductors position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| NXP Semiconductors vs. Tata Steel Limited | NXP Semiconductors vs. Yuexiu Transport Infrastructure | NXP Semiconductors vs. Renovare Environmental | NXP Semiconductors vs. NorthPoint Communications Group |
| Chemtrade Logistics vs. Casio Computer Co | Chemtrade Logistics vs. Natural Beauty Bio Technology | Chemtrade Logistics vs. TeraForce Technology | Chemtrade Logistics vs. Juma Technology Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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