Correlation Between Sekisui Chemical and Global Ship
Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical and Global Ship 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 Sekisui Chemical and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekisui Chemical Co and Global Ship Lease, you can compare the effects of market volatilities on Sekisui Chemical and Global Ship 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 Sekisui Chemical with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and Global Ship.
Diversification Opportunities for Sekisui Chemical and Global Ship
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sekisui and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Sekisui Chemical 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 Sekisui Chemical Co are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Sekisui Chemical i.e., Sekisui Chemical and Global Ship go up and down completely randomly.
Pair Corralation between Sekisui Chemical and Global Ship
Assuming the 90 days horizon Sekisui Chemical Co is expected to under-perform the Global Ship. In addition to that, Sekisui Chemical is 1.03 times more volatile than Global Ship Lease. It trades about -0.33 of its total potential returns per unit of risk. Global Ship Lease is currently generating about -0.08 per unit of volatility. If you would invest 2,182 in Global Ship Lease on November 7, 2024 and sell it today you would lose (62.00) from holding Global Ship Lease or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sekisui Chemical Co vs. Global Ship Lease
Performance |
| Timeline |
| Sekisui Chemical |
| Global Ship Lease |
Sekisui Chemical and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekisui Chemical and Global Ship
The main advantage of trading using opposite Sekisui Chemical and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekisui Chemical position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Sekisui Chemical vs. PENN NATL GAMING | Sekisui Chemical vs. Kingdee International Software | Sekisui Chemical vs. Constellation Software | Sekisui Chemical vs. Check Point Software |
| Global Ship vs. GREENX METALS LTD | Global Ship vs. SYSTEMAIR AB | Global Ship vs. AEON METALS LTD | Global Ship vs. AIR LIQUIDE ADR |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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