Correlation Between Sherwin Williams and Minerals Technologies
Can any of the company-specific risk be diversified away by investing in both Sherwin Williams and Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies, you can compare the effects of market volatilities on Sherwin Williams and Minerals Technologies 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 Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherwin Williams and Minerals Technologies.
Diversification Opportunities for Sherwin Williams and Minerals Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sherwin and Minerals is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sherwin Williams Co and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies 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 Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of Sherwin Williams i.e., Sherwin Williams and Minerals Technologies go up and down completely randomly.
Pair Corralation between Sherwin Williams and Minerals Technologies
Considering the 90-day investment horizon Sherwin Williams Co is expected to generate 0.64 times more return on investment than Minerals Technologies. However, Sherwin Williams Co is 1.56 times less risky than Minerals Technologies. It trades about 0.25 of its potential returns per unit of risk. Minerals Technologies is currently generating about 0.13 per unit of risk. If you would invest 36,095 in Sherwin Williams Co on August 30, 2024 and sell it today you would earn a total of 3,301 from holding Sherwin Williams Co or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sherwin Williams Co vs. Minerals Technologies
Performance |
| Timeline |
| Sherwin Williams |
| Minerals Technologies |
Sherwin Williams and Minerals Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherwin Williams and Minerals Technologies
The main advantage of trading using opposite Sherwin Williams and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherwin Williams position performs unexpectedly, Minerals Technologies 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.| Sherwin Williams vs. Air Products and | Sherwin Williams vs. Linde plc Ordinary | Sherwin Williams vs. Ecolab Inc | Sherwin Williams vs. RPM International |
| Minerals Technologies vs. Quaker Chemical | Minerals Technologies vs. Innospec | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Cabot |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |