Correlation Between Styrenix Performance and Whirlpool
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By analyzing existing cross correlation between Styrenix Performance Materials and Whirlpool of India, you can compare the effects of market volatilities on Styrenix Performance and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Styrenix Performance and Whirlpool.
Diversification Opportunities for Styrenix Performance and Whirlpool
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Styrenix and Whirlpool is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Styrenix Performance Materials and Whirlpool of India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool of India 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool of India has no effect on the direction of Styrenix Performance i.e., Styrenix Performance and Whirlpool go up and down completely randomly.
Pair Corralation between Styrenix Performance and Whirlpool
Assuming the 90 days trading horizon Styrenix Performance Materials is expected to generate 0.59 times more return on investment than Whirlpool. However, Styrenix Performance Materials is 1.68 times less risky than Whirlpool. It trades about 0.06 of its potential returns per unit of risk. Whirlpool of India is currently generating about -0.1 per unit of risk. If you would invest 247,015 in Styrenix Performance Materials on September 5, 2024 and sell it today you would earn a total of 4,325 from holding Styrenix Performance Materials or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Styrenix Performance Materials vs. Whirlpool of India
Performance |
| Timeline |
| Styrenix Performance |
| Whirlpool of India |
Styrenix Performance and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Styrenix Performance and Whirlpool
The main advantage of trading using opposite Styrenix Performance and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Styrenix Performance position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.The idea behind Styrenix Performance Materials and Whirlpool of India pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Whirlpool vs. Styrenix Performance Materials | Whirlpool vs. LLOYDS METALS AND | Whirlpool vs. Shyam Metalics and | Whirlpool vs. JGCHEMICALS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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