Correlation Between Styrenix Performance and Automotive Stampings
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By analyzing existing cross correlation between Styrenix Performance Materials and Automotive Stampings and, you can compare the effects of market volatilities on Styrenix Performance and Automotive Stampings 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 Automotive Stampings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Styrenix Performance and Automotive Stampings.
Diversification Opportunities for Styrenix Performance and Automotive Stampings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Styrenix and Automotive is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Styrenix Performance Materials and Automotive Stampings and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automotive Stampings and 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 Automotive Stampings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automotive Stampings and has no effect on the direction of Styrenix Performance i.e., Styrenix Performance and Automotive Stampings go up and down completely randomly.
Pair Corralation between Styrenix Performance and Automotive Stampings
Assuming the 90 days trading horizon Styrenix Performance Materials is expected to generate 0.71 times more return on investment than Automotive Stampings. However, Styrenix Performance Materials is 1.41 times less risky than Automotive Stampings. It trades about -0.31 of its potential returns per unit of risk. Automotive Stampings and is currently generating about -0.25 per unit of risk. If you would invest 291,640 in Styrenix Performance Materials on November 5, 2024 and sell it today you would lose (43,695) from holding Styrenix Performance Materials or give up 14.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Styrenix Performance Materials vs. Automotive Stampings and
Performance |
| Timeline |
| Styrenix Performance |
| Automotive Stampings and |
Styrenix Performance and Automotive Stampings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Styrenix Performance and Automotive Stampings
The main advantage of trading using opposite Styrenix Performance and Automotive Stampings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Styrenix Performance position performs unexpectedly, Automotive Stampings 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 Automotive Stampings will offset losses from the drop in Automotive Stampings' long position.| Styrenix Performance vs. Medplus Health Services | Styrenix Performance vs. Apollo Hospitals Enterprise | Styrenix Performance vs. FCS Software Solutions | Styrenix Performance vs. Compucom Software Limited |
| Automotive Stampings vs. Khaitan Chemicals Fertilizers | Automotive Stampings vs. JGCHEMICALS LIMITED | Automotive Stampings vs. One 97 Communications | Automotive Stampings vs. Indo Rama Synthetics |
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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