Correlation Between Huntsman and Sisecam Resources
Can any of the company-specific risk be diversified away by investing in both Huntsman and Sisecam Resources 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 Huntsman and Sisecam Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman and Sisecam Resources LP, you can compare the effects of market volatilities on Huntsman and Sisecam Resources 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 Huntsman with a short position of Sisecam Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman and Sisecam Resources.
Diversification Opportunities for Huntsman and Sisecam Resources
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huntsman and Sisecam is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman and Sisecam Resources LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sisecam Resources and Huntsman 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 Huntsman are associated (or correlated) with Sisecam Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sisecam Resources has no effect on the direction of Huntsman i.e., Huntsman and Sisecam Resources go up and down completely randomly.
Pair Corralation between Huntsman and Sisecam Resources
Considering the 90-day investment horizon Huntsman is expected to under-perform the Sisecam Resources. In addition to that, Huntsman is 10.05 times more volatile than Sisecam Resources LP. It trades about -0.05 of its total potential returns per unit of risk. Sisecam Resources LP is currently generating about 0.23 per unit of volatility. If you would invest 2,456 in Sisecam Resources LP on August 27, 2024 and sell it today you would earn a total of 77.00 from holding Sisecam Resources LP or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 17.36% |
| Values | Daily Returns |
Huntsman vs. Sisecam Resources LP
Performance |
| Timeline |
| Huntsman |
| Sisecam Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Huntsman and Sisecam Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman and Sisecam Resources
The main advantage of trading using opposite Huntsman and Sisecam Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman position performs unexpectedly, Sisecam Resources 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 Sisecam Resources will offset losses from the drop in Sisecam Resources' long position.| Huntsman vs. Valhi Inc | Huntsman vs. Lsb Industries | Huntsman vs. Westlake Chemical Partners | Huntsman vs. Braskem SA Class |
| Sisecam Resources vs. Methanex | Sisecam Resources vs. AdvanSix | Sisecam Resources vs. Lsb Industries | Sisecam Resources vs. Tronox Holdings PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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