Correlation Between Max Financial and Styrenix Performance
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By analyzing existing cross correlation between Max Financial Services and Styrenix Performance Materials, you can compare the effects of market volatilities on Max Financial and Styrenix Performance 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 Max Financial with a short position of Styrenix Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and Styrenix Performance.
Diversification Opportunities for Max Financial and Styrenix Performance
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Max and Styrenix is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and Styrenix Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Styrenix Performance and Max Financial 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 Max Financial Services are associated (or correlated) with Styrenix Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Styrenix Performance has no effect on the direction of Max Financial i.e., Max Financial and Styrenix Performance go up and down completely randomly.
Pair Corralation between Max Financial and Styrenix Performance
Assuming the 90 days trading horizon Max Financial Services is expected to under-perform the Styrenix Performance. But the stock apears to be less risky and, when comparing its historical volatility, Max Financial Services is 1.0 times less risky than Styrenix Performance. The stock trades about -0.34 of its potential returns per unit of risk. The Styrenix Performance Materials is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 247,015 in Styrenix Performance Materials on September 4, 2024 and sell it today you would earn a total of 4,335 from holding Styrenix Performance Materials or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Max Financial Services vs. Styrenix Performance Materials
Performance |
| Timeline |
| Max Financial Services |
| Styrenix Performance |
Max Financial and Styrenix Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and Styrenix Performance
The main advantage of trading using opposite Max Financial and Styrenix Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, Styrenix Performance 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 Styrenix Performance will offset losses from the drop in Styrenix Performance's long position.| Max Financial vs. AVALON TECHNOLOGIES LTD | Max Financial vs. ADF Foods Limited | Max Financial vs. Agro Tech Foods | Max Financial vs. Newgen Software Technologies |
| Styrenix Performance vs. Life Insurance | Styrenix Performance vs. Max Financial Services | Styrenix Performance vs. DCB Bank Limited | Styrenix Performance vs. Popular Vehicles and |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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