Correlation Between Sekisui Chemical and International Flavors
Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical and International Flavors 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 International Flavors 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 International Flavors Fragrances, you can compare the effects of market volatilities on Sekisui Chemical and International Flavors 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 International Flavors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and International Flavors.
Diversification Opportunities for Sekisui Chemical and International Flavors
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sekisui and International is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co and International Flavors Fragranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Flavors 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 International Flavors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Flavors has no effect on the direction of Sekisui Chemical i.e., Sekisui Chemical and International Flavors go up and down completely randomly.
Pair Corralation between Sekisui Chemical and International Flavors
Assuming the 90 days horizon Sekisui Chemical Co is expected to generate 0.81 times more return on investment than International Flavors. However, Sekisui Chemical Co is 1.24 times less risky than International Flavors. It trades about 0.03 of its potential returns per unit of risk. International Flavors Fragrances is currently generating about 0.0 per unit of risk. If you would invest 1,270 in Sekisui Chemical Co on September 2, 2024 and sell it today you would earn a total of 230.00 from holding Sekisui Chemical Co or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekisui Chemical Co vs. International Flavors Fragranc
Performance |
| Timeline |
| Sekisui Chemical |
| International Flavors |
Sekisui Chemical and International Flavors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekisui Chemical and International Flavors
The main advantage of trading using opposite Sekisui Chemical and International Flavors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekisui Chemical position performs unexpectedly, International Flavors 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 International Flavors will offset losses from the drop in International Flavors' long position.| Sekisui Chemical vs. XLMedia PLC | Sekisui Chemical vs. USWE SPORTS AB | Sekisui Chemical vs. PLAYTECH | Sekisui Chemical vs. Playtech plc |
| International Flavors vs. THRACE PLASTICS | International Flavors vs. Tower One Wireless | International Flavors vs. Cogent Communications Holdings | International Flavors vs. SANOK RUBBER ZY |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |