Correlation Between Intracellular and Clearwater Paper

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

Diversification Opportunities for Intracellular and Clearwater Paper

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Intracellular and Clearwater is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Intracellular Th and Clearwater Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Paper and Intracellular 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 Intracellular Th are associated (or correlated) with Clearwater Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Paper has no effect on the direction of Intracellular i.e., Intracellular and Clearwater Paper go up and down completely randomly.

Pair Corralation between Intracellular and Clearwater Paper

Given the investment horizon of 90 days Intracellular Th is expected to generate 1.53 times more return on investment than Clearwater Paper. However, Intracellular is 1.53 times more volatile than Clearwater Paper. It trades about 0.22 of its potential returns per unit of risk. Clearwater Paper is currently generating about 0.07 per unit of risk. If you would invest  4,583  in Intracellular Th on September 3, 2022 and sell it today you would earn a total of  762.00  from holding Intracellular Th or generate 16.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Intracellular Th  vs.  Clearwater Paper

 Performance (%) 
       Timeline  
Intracellular Th 
Intracellular Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Intracellular Th are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Intracellular may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Intracellular Price Channel

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

Intracellular and Clearwater Paper Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intracellular and Clearwater Paper

The main advantage of trading using opposite Intracellular and Clearwater Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracellular position performs unexpectedly, Clearwater Paper 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 Clearwater Paper will offset losses from the drop in Clearwater Paper's long position.
Intracellular vs. Northwest Healthcare Properties
Intracellular vs. Anheuser Busch Inbev
The idea behind Intracellular Th and Clearwater Paper 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.
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
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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go