Correlation Between Sensient Technologies and CHRISTUS
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By analyzing existing cross correlation between Sensient Technologies and CHRISTUS HEALTH 4341, you can compare the effects of market volatilities on Sensient Technologies and CHRISTUS 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 Sensient Technologies with a short position of CHRISTUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and CHRISTUS.
Diversification Opportunities for Sensient Technologies and CHRISTUS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sensient and CHRISTUS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and CHRISTUS HEALTH 4341 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRISTUS HEALTH 4341 and Sensient Technologies 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 Sensient Technologies are associated (or correlated) with CHRISTUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHRISTUS HEALTH 4341 has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and CHRISTUS go up and down completely randomly.
Pair Corralation between Sensient Technologies and CHRISTUS
Considering the 90-day investment horizon Sensient Technologies is expected to generate 1.73 times more return on investment than CHRISTUS. However, Sensient Technologies is 1.73 times more volatile than CHRISTUS HEALTH 4341. It trades about 0.0 of its potential returns per unit of risk. CHRISTUS HEALTH 4341 is currently generating about -0.01 per unit of risk. If you would invest 7,282 in Sensient Technologies on November 27, 2024 and sell it today you would lose (316.00) from holding Sensient Technologies or give up 4.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 69.85% |
| Values | Daily Returns |
Sensient Technologies vs. CHRISTUS HEALTH 4341
Performance |
| Timeline |
| Sensient Technologies |
| CHRISTUS HEALTH 4341 |
Sensient Technologies and CHRISTUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and CHRISTUS
The main advantage of trading using opposite Sensient Technologies and CHRISTUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies position performs unexpectedly, CHRISTUS 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 CHRISTUS will offset losses from the drop in CHRISTUS's long position.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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