Correlation Between BioLargo and Huntsman
Can any of the company-specific risk be diversified away by investing in both BioLargo and Huntsman 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 BioLargo and Huntsman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLargo and Huntsman, you can compare the effects of market volatilities on BioLargo and Huntsman 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 BioLargo with a short position of Huntsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLargo and Huntsman.
Diversification Opportunities for BioLargo and Huntsman
Pay attention - limited upside
The 3 months correlation between BioLargo and Huntsman is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BioLargo and Huntsman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman and BioLargo 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 BioLargo are associated (or correlated) with Huntsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman has no effect on the direction of BioLargo i.e., BioLargo and Huntsman go up and down completely randomly.
Pair Corralation between BioLargo and Huntsman
Given the investment horizon of 90 days BioLargo is expected to generate 3.28 times more return on investment than Huntsman. However, BioLargo is 3.28 times more volatile than Huntsman. It trades about 0.12 of its potential returns per unit of risk. Huntsman is currently generating about -0.21 per unit of risk. If you would invest 20.00 in BioLargo on November 3, 2024 and sell it today you would earn a total of 5.00 from holding BioLargo or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLargo vs. Huntsman
Performance |
| Timeline |
| BioLargo |
| Huntsman |
BioLargo and Huntsman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLargo and Huntsman
The main advantage of trading using opposite BioLargo and Huntsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLargo position performs unexpectedly, Huntsman 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 Huntsman will offset losses from the drop in Huntsman's long position.| BioLargo vs. Altech Batteries Limited | BioLargo vs. Asahi Kaisei Corp | BioLargo vs. Flameret | BioLargo vs. Alumifuel Pwr Corp |
| Huntsman vs. Valhi Inc | Huntsman vs. Lsb Industries | Huntsman vs. Westlake Chemical Partners | Huntsman vs. Braskem SA Class |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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