Correlation Between Sensient Technologies and DTRGR
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By analyzing existing cross correlation between Sensient Technologies and DTRGR 25 14 DEC 31, you can compare the effects of market volatilities on Sensient Technologies and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and DTRGR.
Diversification Opportunities for Sensient Technologies and DTRGR
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sensient and DTRGR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and DTRGR 25 14 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 25 14 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 25 14 has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and DTRGR go up and down completely randomly.
Pair Corralation between Sensient Technologies and DTRGR
Considering the 90-day investment horizon Sensient Technologies is expected to generate 3.19 times more return on investment than DTRGR. However, Sensient Technologies is 3.19 times more volatile than DTRGR 25 14 DEC 31. It trades about 0.24 of its potential returns per unit of risk. DTRGR 25 14 DEC 31 is currently generating about -0.03 per unit of risk. If you would invest 6,993 in Sensient Technologies on November 3, 2024 and sell it today you would earn a total of 558.00 from holding Sensient Technologies or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Sensient Technologies vs. DTRGR 25 14 DEC 31
Performance |
| Timeline |
| Sensient Technologies |
| DTRGR 25 14 |
Sensient Technologies and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and DTRGR
The main advantage of trading using opposite Sensient Technologies and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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