Correlation Between SIEM OFFSHORE and HUNTSMAN
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and HUNTSMAN 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 SIEM OFFSHORE and HUNTSMAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and HUNTSMAN, you can compare the effects of market volatilities on SIEM OFFSHORE and HUNTSMAN 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 SIEM OFFSHORE with a short position of HUNTSMAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and HUNTSMAN.
Diversification Opportunities for SIEM OFFSHORE and HUNTSMAN
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIEM and HUNTSMAN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and HUNTSMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUNTSMAN and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with HUNTSMAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUNTSMAN has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and HUNTSMAN go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and HUNTSMAN
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to generate 1.72 times more return on investment than HUNTSMAN. However, SIEM OFFSHORE is 1.72 times more volatile than HUNTSMAN. It trades about -0.02 of its potential returns per unit of risk. HUNTSMAN is currently generating about -0.06 per unit of risk. If you would invest 286.00 in SIEM OFFSHORE NEW on August 30, 2024 and sell it today you would lose (36.00) from holding SIEM OFFSHORE NEW or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. HUNTSMAN
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| HUNTSMAN |
SIEM OFFSHORE and HUNTSMAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and HUNTSMAN
The main advantage of trading using opposite SIEM OFFSHORE and HUNTSMAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, HUNTSMAN 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 HUNTSMAN will offset losses from the drop in HUNTSMAN's long position.| SIEM OFFSHORE vs. UET United Electronic | SIEM OFFSHORE vs. LG Electronics | SIEM OFFSHORE vs. Computer And Technologies | SIEM OFFSHORE vs. ARROW ELECTRONICS |
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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