Correlation Between Sherwin Williams and HEXPOL AB
Can any of the company-specific risk be diversified away by investing in both Sherwin Williams and HEXPOL AB 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 Sherwin Williams and HEXPOL AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sherwin Williams Co and HEXPOL AB, you can compare the effects of market volatilities on Sherwin Williams and HEXPOL AB 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 Sherwin Williams with a short position of HEXPOL AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherwin Williams and HEXPOL AB.
Diversification Opportunities for Sherwin Williams and HEXPOL AB
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sherwin and HEXPOL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sherwin Williams Co and HEXPOL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXPOL AB and Sherwin Williams 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 Sherwin Williams Co are associated (or correlated) with HEXPOL AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXPOL AB has no effect on the direction of Sherwin Williams i.e., Sherwin Williams and HEXPOL AB go up and down completely randomly.
Pair Corralation between Sherwin Williams and HEXPOL AB
Considering the 90-day investment horizon Sherwin Williams Co is expected to generate 0.68 times more return on investment than HEXPOL AB. However, Sherwin Williams Co is 1.47 times less risky than HEXPOL AB. It trades about 0.07 of its potential returns per unit of risk. HEXPOL AB is currently generating about -0.05 per unit of risk. If you would invest 33,001 in Sherwin Williams Co on August 27, 2024 and sell it today you would earn a total of 5,829 from holding Sherwin Williams Co or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.89% |
| Values | Daily Returns |
Sherwin Williams Co vs. HEXPOL AB
Performance |
| Timeline |
| Sherwin Williams |
| HEXPOL AB |
Sherwin Williams and HEXPOL AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherwin Williams and HEXPOL AB
The main advantage of trading using opposite Sherwin Williams and HEXPOL AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherwin Williams position performs unexpectedly, HEXPOL AB 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 HEXPOL AB will offset losses from the drop in HEXPOL AB's long position.| Sherwin Williams vs. Minerals Technologies | Sherwin Williams vs. Oil Dri | Sherwin Williams vs. H B Fuller | Sherwin Williams vs. Northern Technologies |
| HEXPOL AB vs. First Graphene | HEXPOL AB vs. HUMANA INC | HEXPOL AB vs. Aquagold International | HEXPOL AB vs. Barloworld Ltd ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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