Correlation Between Univar and Westlake Chemical
Can any of the company-specific risk be diversified away by investing in both Univar and Westlake Chemical 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 Univar and Westlake Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univar Inc and Westlake Chemical Partners, you can compare the effects of market volatilities on Univar and Westlake Chemical 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 Univar with a short position of Westlake Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univar and Westlake Chemical.
Diversification Opportunities for Univar and Westlake Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Univar and Westlake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Univar Inc and Westlake Chemical Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westlake Chemical and Univar 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 Univar Inc are associated (or correlated) with Westlake Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westlake Chemical has no effect on the direction of Univar i.e., Univar and Westlake Chemical go up and down completely randomly.
Pair Corralation between Univar and Westlake Chemical
If you would invest 2,258 in Westlake Chemical Partners on August 24, 2024 and sell it today you would earn a total of 49.00 from holding Westlake Chemical Partners or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Univar Inc vs. Westlake Chemical Partners
Performance |
| Timeline |
| Univar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Westlake Chemical |
Univar and Westlake Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univar and Westlake Chemical
The main advantage of trading using opposite Univar and Westlake Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univar position performs unexpectedly, Westlake Chemical 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 Westlake Chemical will offset losses from the drop in Westlake Chemical's long position.| Univar vs. Valhi Inc | Univar vs. Huntsman | Univar vs. Lsb Industries | Univar vs. Westlake Chemical Partners |
| Westlake Chemical vs. Valhi Inc | Westlake Chemical vs. Huntsman | Westlake Chemical vs. Lsb Industries | Westlake Chemical vs. Green Plains Renewable |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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