Correlation Between LyondellBasell Industries and Eshallgo
Can any of the company-specific risk be diversified away by investing in both LyondellBasell Industries and Eshallgo 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 LyondellBasell Industries and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LyondellBasell Industries NV and Eshallgo Class A, you can compare the effects of market volatilities on LyondellBasell Industries and Eshallgo 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 LyondellBasell Industries with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of LyondellBasell Industries and Eshallgo.
Diversification Opportunities for LyondellBasell Industries and Eshallgo
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LyondellBasell and Eshallgo is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding LyondellBasell Industries NV and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and LyondellBasell Industries 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 LyondellBasell Industries NV are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of LyondellBasell Industries i.e., LyondellBasell Industries and Eshallgo go up and down completely randomly.
Pair Corralation between LyondellBasell Industries and Eshallgo
Considering the 90-day investment horizon LyondellBasell Industries NV is expected to under-perform the Eshallgo. But the stock apears to be less risky and, when comparing its historical volatility, LyondellBasell Industries NV is 7.51 times less risky than Eshallgo. The stock trades about -0.18 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Eshallgo Class A on August 28, 2024 and sell it today you would earn a total of 156.00 from holding Eshallgo Class A or generate 66.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LyondellBasell Industries NV vs. Eshallgo Class A
Performance |
| Timeline |
| LyondellBasell Industries |
| Eshallgo Class A |
LyondellBasell Industries and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LyondellBasell Industries and Eshallgo
The main advantage of trading using opposite LyondellBasell Industries and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LyondellBasell Industries position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| LyondellBasell Industries vs. International Flavors Fragrances | LyondellBasell Industries vs. Cabot | LyondellBasell Industries vs. Westlake Chemical | LyondellBasell Industries vs. Air Products and |
| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |