Correlation Between Grammer AG and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both Grammer AG and SEKISUI 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 Grammer AG and SEKISUI CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grammer AG and SEKISUI CHEMICAL, you can compare the effects of market volatilities on Grammer AG and SEKISUI 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 Grammer AG with a short position of SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grammer AG and SEKISUI CHEMICAL.
Diversification Opportunities for Grammer AG and SEKISUI CHEMICAL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grammer and SEKISUI is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Grammer AG and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL and Grammer AG 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 Grammer AG are associated (or correlated) with SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of Grammer AG i.e., Grammer AG and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between Grammer AG and SEKISUI CHEMICAL
Assuming the 90 days trading horizon Grammer AG is expected to under-perform the SEKISUI CHEMICAL. In addition to that, Grammer AG is 1.64 times more volatile than SEKISUI CHEMICAL. It trades about -0.36 of its total potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about 0.3 per unit of volatility. If you would invest 1,360 in SEKISUI CHEMICAL on September 2, 2024 and sell it today you would earn a total of 140.00 from holding SEKISUI CHEMICAL or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grammer AG vs. SEKISUI CHEMICAL
Performance |
| Timeline |
| Grammer AG |
| SEKISUI CHEMICAL |
Grammer AG and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grammer AG and SEKISUI CHEMICAL
The main advantage of trading using opposite Grammer AG and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grammer AG position performs unexpectedly, SEKISUI 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.| Grammer AG vs. Evolution Mining Limited | Grammer AG vs. Transportadora de Gas | Grammer AG vs. Lion One Metals | Grammer AG vs. Gold Road Resources |
| SEKISUI CHEMICAL vs. PTT Global Chemical | SEKISUI CHEMICAL vs. Fair Isaac Corp | SEKISUI CHEMICAL vs. Norwegian Air Shuttle | SEKISUI CHEMICAL vs. DELTA AIR LINES |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |