Correlation Between Shin-Etsu Chemical and Univar
Can any of the company-specific risk be diversified away by investing in both Shin-Etsu Chemical and Univar 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 Shin-Etsu Chemical and Univar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Etsu Chemical Co and Univar Inc, you can compare the effects of market volatilities on Shin-Etsu Chemical and Univar 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 Shin-Etsu Chemical with a short position of Univar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin-Etsu Chemical and Univar.
Diversification Opportunities for Shin-Etsu Chemical and Univar
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin-Etsu and Univar is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shin Etsu Chemical Co and Univar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univar Inc and Shin-Etsu Chemical 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 Shin Etsu Chemical Co are associated (or correlated) with Univar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univar Inc has no effect on the direction of Shin-Etsu Chemical i.e., Shin-Etsu Chemical and Univar go up and down completely randomly.
Pair Corralation between Shin-Etsu Chemical and Univar
If you would invest 3,819 in Shin Etsu Chemical Co on September 1, 2024 and sell it today you would lose (255.00) from holding Shin Etsu Chemical Co or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Shin Etsu Chemical Co vs. Univar Inc
Performance |
| Timeline |
| Shin Etsu Chemical |
| Univar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shin-Etsu Chemical and Univar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin-Etsu Chemical and Univar
The main advantage of trading using opposite Shin-Etsu Chemical and Univar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin-Etsu Chemical position performs unexpectedly, Univar 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 Univar will offset losses from the drop in Univar's long position.| Shin-Etsu Chemical vs. Kuraray Co | Shin-Etsu Chemical vs. Mitsubishi Chemical Holdings | Shin-Etsu Chemical vs. Sumitomo Chemical Co | Shin-Etsu Chemical vs. Valhi Inc |
| Univar vs. Valhi Inc | Univar vs. Huntsman | Univar vs. Lsb Industries | Univar vs. Westlake Chemical Partners |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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