Correlation Between Flexible Solutions and WESTLAKE
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By analyzing existing cross correlation between Flexible Solutions International and WESTLAKE CHEM P, you can compare the effects of market volatilities on Flexible Solutions and WESTLAKE 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 Flexible Solutions with a short position of WESTLAKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and WESTLAKE.
Diversification Opportunities for Flexible Solutions and WESTLAKE
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flexible and WESTLAKE is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and WESTLAKE CHEM P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESTLAKE CHEM P and Flexible Solutions 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 Flexible Solutions International are associated (or correlated) with WESTLAKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESTLAKE CHEM P has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and WESTLAKE go up and down completely randomly.
Pair Corralation between Flexible Solutions and WESTLAKE
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 2.07 times more return on investment than WESTLAKE. However, Flexible Solutions is 2.07 times more volatile than WESTLAKE CHEM P. It trades about 0.12 of its potential returns per unit of risk. WESTLAKE CHEM P is currently generating about -0.03 per unit of risk. If you would invest 182.00 in Flexible Solutions International on August 25, 2024 and sell it today you would earn a total of 220.00 from holding Flexible Solutions International or generate 120.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.97% |
| Values | Daily Returns |
Flexible Solutions Internation vs. WESTLAKE CHEM P
Performance |
| Timeline |
| Flexible Solutions |
| WESTLAKE CHEM P |
Flexible Solutions and WESTLAKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and WESTLAKE
The main advantage of trading using opposite Flexible Solutions and WESTLAKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, WESTLAKE 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 WESTLAKE will offset losses from the drop in WESTLAKE's long position.| Flexible Solutions vs. Minerals Technologies | Flexible Solutions vs. Oil Dri | Flexible Solutions vs. H B Fuller | Flexible Solutions vs. Northern Technologies |
| WESTLAKE vs. Flexible Solutions International | WESTLAKE vs. GMS Inc | WESTLAKE vs. Griffon | WESTLAKE vs. Jacobs Solutions |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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