Correlation Between Styrenix Performance and Action Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Styrenix Performance Materials and Action Construction Equipment, you can compare the effects of market volatilities on Styrenix Performance and Action Construction 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 Styrenix Performance with a short position of Action Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Styrenix Performance and Action Construction.
Diversification Opportunities for Styrenix Performance and Action Construction
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Styrenix and Action is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Styrenix Performance Materials and Action Construction Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Action Construction and Styrenix Performance 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 Styrenix Performance Materials are associated (or correlated) with Action Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Action Construction has no effect on the direction of Styrenix Performance i.e., Styrenix Performance and Action Construction go up and down completely randomly.
Pair Corralation between Styrenix Performance and Action Construction
Assuming the 90 days trading horizon Styrenix Performance Materials is expected to generate 0.7 times more return on investment than Action Construction. However, Styrenix Performance Materials is 1.42 times less risky than Action Construction. It trades about -0.31 of its potential returns per unit of risk. Action Construction Equipment is currently generating about -0.26 per unit of risk. If you would invest 301,530 in Styrenix Performance Materials on November 2, 2024 and sell it today you would lose (43,520) from holding Styrenix Performance Materials or give up 14.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Styrenix Performance Materials vs. Action Construction Equipment
Performance |
| Timeline |
| Styrenix Performance |
| Action Construction |
Styrenix Performance and Action Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Styrenix Performance and Action Construction
The main advantage of trading using opposite Styrenix Performance and Action Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Styrenix Performance position performs unexpectedly, Action Construction 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 Action Construction will offset losses from the drop in Action Construction's long position.| Styrenix Performance vs. Blue Coast Hotels | Styrenix Performance vs. General Insurance | Styrenix Performance vs. Samhi Hotels Limited | Styrenix Performance vs. Juniper Hotels |
| Action Construction vs. Compucom Software Limited | Action Construction vs. VIP Clothing Limited | Action Construction vs. LLOYDS METALS AND | Action Construction vs. Iris Clothings Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |