Correlation Between Clearwater Paper and Chewy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Clearwater Paper and Chewy 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 Clearwater Paper and Chewy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Paper and Chewy Inc, you can compare the effects of market volatilities on Clearwater Paper and Chewy 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 Clearwater Paper with a short position of Chewy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Paper and Chewy.

Diversification Opportunities for Clearwater Paper and Chewy

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Clearwater and Chewy is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Paper and Chewy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewy Inc and Clearwater Paper 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 Clearwater Paper are associated (or correlated) with Chewy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewy Inc has no effect on the direction of Clearwater Paper i.e., Clearwater Paper and Chewy go up and down completely randomly.

Pair Corralation between Clearwater Paper and Chewy

Considering the 90-day investment horizon Clearwater Paper is expected to generate 0.64 times more return on investment than Chewy. However, Clearwater Paper is 1.56 times less risky than Chewy. It trades about 0.02 of its potential returns per unit of risk. Chewy Inc is currently generating about -0.01 per unit of risk. If you would invest  3,776  in Clearwater Paper on September 3, 2022 and sell it today you would earn a total of  161.00  from holding Clearwater Paper or generate 4.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Clearwater Paper  vs.  Chewy Inc

 Performance (%) 
       Timeline  
Clearwater Paper 
Clearwater Performance
0 of 100
Over the last 90 days Clearwater Paper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Clearwater Paper is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Clearwater Price Channel

Chewy Inc 
Chewy Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chewy Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Chewy showed solid returns over the last few months and may actually be approaching a breakup point.

Chewy Price Channel

Clearwater Paper and Chewy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Clearwater Paper and Chewy

The main advantage of trading using opposite Clearwater Paper and Chewy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Paper position performs unexpectedly, Chewy 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 Chewy will offset losses from the drop in Chewy's long position.
Clearwater Paper vs. PT Bank Central
Clearwater Paper vs. Bank Central Asia
Clearwater Paper vs. Anheuser-Busch InBev SANV
Clearwater Paper vs. GROWTH FUND OF
The idea behind Clearwater Paper and Chewy Inc 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.
Chewy vs. Anheuser-Busch InBev SANV
Chewy vs. Northwest Healthcare Properties
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go