Correlation Between Sherwin Williams and Sanyo Chemical
Can any of the company-specific risk be diversified away by investing in both Sherwin Williams and Sanyo Chemical 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 Sanyo Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Sherwin Williams and Sanyo Chemical Industries, you can compare the effects of market volatilities on Sherwin Williams and Sanyo Chemical 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 Sanyo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherwin Williams and Sanyo Chemical.
Diversification Opportunities for Sherwin Williams and Sanyo Chemical
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sherwin and Sanyo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Sherwin Williams and Sanyo Chemical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanyo Chemical Industries 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 The Sherwin Williams are associated (or correlated) with Sanyo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanyo Chemical Industries has no effect on the direction of Sherwin Williams i.e., Sherwin Williams and Sanyo Chemical go up and down completely randomly.
Pair Corralation between Sherwin Williams and Sanyo Chemical
Assuming the 90 days horizon The Sherwin Williams is expected to generate 2.17 times more return on investment than Sanyo Chemical. However, Sherwin Williams is 2.17 times more volatile than Sanyo Chemical Industries. It trades about 0.14 of its potential returns per unit of risk. Sanyo Chemical Industries is currently generating about -0.04 per unit of risk. If you would invest 32,530 in The Sherwin Williams on November 7, 2024 and sell it today you would earn a total of 1,975 from holding The Sherwin Williams or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Sherwin Williams vs. Sanyo Chemical Industries
Performance |
| Timeline |
| Sherwin Williams |
| Sanyo Chemical Industries |
Sherwin Williams and Sanyo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherwin Williams and Sanyo Chemical
The main advantage of trading using opposite Sherwin Williams and Sanyo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherwin Williams position performs unexpectedly, Sanyo Chemical 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 Sanyo Chemical will offset losses from the drop in Sanyo Chemical's long position.| Sherwin Williams vs. X FAB Silicon Foundries | Sherwin Williams vs. MidCap Financial Investment | Sherwin Williams vs. MGIC INVESTMENT | Sherwin Williams vs. Gladstone Investment |
| Sanyo Chemical vs. DISTRICT METALS | Sanyo Chemical vs. De Grey Mining | Sanyo Chemical vs. Siamgas And Petrochemicals | Sanyo Chemical vs. Calibre Mining Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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