Correlation Between Caseys General and SHIN-ETSU CHEMICAL
Can any of the company-specific risk be diversified away by investing in both Caseys General and SHIN-ETSU CHEMICAL 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 Caseys General and SHIN-ETSU CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and SHIN ETSU CHEMICAL, you can compare the effects of market volatilities on Caseys General and SHIN-ETSU CHEMICAL 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 Caseys General with a short position of SHIN-ETSU CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and SHIN-ETSU CHEMICAL.
Diversification Opportunities for Caseys General and SHIN-ETSU CHEMICAL
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caseys and SHIN-ETSU is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and SHIN ETSU CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIN ETSU CHEMICAL and Caseys General 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 Caseys General Stores are associated (or correlated) with SHIN-ETSU CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIN ETSU CHEMICAL has no effect on the direction of Caseys General i.e., Caseys General and SHIN-ETSU CHEMICAL go up and down completely randomly.
Pair Corralation between Caseys General and SHIN-ETSU CHEMICAL
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 1.3 times more return on investment than SHIN-ETSU CHEMICAL. However, Caseys General is 1.3 times more volatile than SHIN ETSU CHEMICAL. It trades about 0.21 of its potential returns per unit of risk. SHIN ETSU CHEMICAL is currently generating about 0.02 per unit of risk. If you would invest 36,150 in Caseys General Stores on September 1, 2024 and sell it today you would earn a total of 3,450 from holding Caseys General Stores or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Caseys General Stores vs. SHIN ETSU CHEMICAL
Performance |
| Timeline |
| Caseys General Stores |
| SHIN ETSU CHEMICAL |
Caseys General and SHIN-ETSU CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and SHIN-ETSU CHEMICAL
The main advantage of trading using opposite Caseys General and SHIN-ETSU CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, SHIN-ETSU CHEMICAL 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 SHIN-ETSU CHEMICAL will offset losses from the drop in SHIN-ETSU CHEMICAL's long position.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| SHIN-ETSU CHEMICAL vs. National Retail Properties | SHIN-ETSU CHEMICAL vs. RETAIL FOOD GROUP | SHIN-ETSU CHEMICAL vs. Fast Retailing Co | SHIN-ETSU CHEMICAL vs. SERI INDUSTRIAL EO |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |