Correlation Between GLENLN and Sensient Technologies
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By analyzing existing cross correlation between GLENLN 4 27 MAR 27 and Sensient Technologies, you can compare the effects of market volatilities on GLENLN and Sensient Technologies 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 GLENLN with a short position of Sensient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and Sensient Technologies.
Diversification Opportunities for GLENLN and Sensient Technologies
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GLENLN and Sensient is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 4 27 MAR 27 and Sensient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensient Technologies and GLENLN 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 GLENLN 4 27 MAR 27 are associated (or correlated) with Sensient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensient Technologies has no effect on the direction of GLENLN i.e., GLENLN and Sensient Technologies go up and down completely randomly.
Pair Corralation between GLENLN and Sensient Technologies
Assuming the 90 days trading horizon GLENLN is expected to generate 59.25 times less return on investment than Sensient Technologies. But when comparing it to its historical volatility, GLENLN 4 27 MAR 27 is 5.38 times less risky than Sensient Technologies. It trades about 0.01 of its potential returns per unit of risk. Sensient Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,993 in Sensient Technologies on September 4, 2024 and sell it today you would earn a total of 1,811 from holding Sensient Technologies or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.14% |
| Values | Daily Returns |
GLENLN 4 27 MAR 27 vs. Sensient Technologies
Performance |
| Timeline |
| GLENLN 4 27 |
| Sensient Technologies |
GLENLN and Sensient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLENLN and Sensient Technologies
The main advantage of trading using opposite GLENLN and Sensient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLENLN position performs unexpectedly, Sensient Technologies 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 Sensient Technologies will offset losses from the drop in Sensient Technologies' long position.The idea behind GLENLN 4 27 MAR 27 and Sensient Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller | Sensient Technologies vs. Quaker Chemical |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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