Correlation Between Sisecam Resources and Celanese
Can any of the company-specific risk be diversified away by investing in both Sisecam Resources and Celanese 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 Sisecam Resources and Celanese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sisecam Resources LP and Celanese, you can compare the effects of market volatilities on Sisecam Resources and Celanese 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 Sisecam Resources with a short position of Celanese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sisecam Resources and Celanese.
Diversification Opportunities for Sisecam Resources and Celanese
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sisecam and Celanese is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sisecam Resources LP and Celanese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celanese and Sisecam Resources 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 Sisecam Resources LP are associated (or correlated) with Celanese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celanese has no effect on the direction of Sisecam Resources i.e., Sisecam Resources and Celanese go up and down completely randomly.
Pair Corralation between Sisecam Resources and Celanese
If you would invest 2,533 in Sisecam Resources LP on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Sisecam Resources LP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Sisecam Resources LP vs. Celanese
Performance |
| Timeline |
| Sisecam Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Celanese |
Sisecam Resources and Celanese Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sisecam Resources and Celanese
The main advantage of trading using opposite Sisecam Resources and Celanese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sisecam Resources position performs unexpectedly, Celanese 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 Celanese will offset losses from the drop in Celanese's long position.| Sisecam Resources vs. Methanex | Sisecam Resources vs. AdvanSix | Sisecam Resources vs. Lsb Industries | Sisecam Resources vs. Tronox Holdings PLC |
| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Valhi Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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