Correlation Between STANLN and Axalta Coating
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By analyzing existing cross correlation between STANLN 32 17 APR 25 and Axalta Coating Systems, you can compare the effects of market volatilities on STANLN and Axalta Coating 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 STANLN with a short position of Axalta Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANLN and Axalta Coating.
Diversification Opportunities for STANLN and Axalta Coating
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between STANLN and Axalta is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding STANLN 32 17 APR 25 and Axalta Coating Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axalta Coating Systems and STANLN 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 STANLN 32 17 APR 25 are associated (or correlated) with Axalta Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axalta Coating Systems has no effect on the direction of STANLN i.e., STANLN and Axalta Coating go up and down completely randomly.
Pair Corralation between STANLN and Axalta Coating
Assuming the 90 days trading horizon STANLN is expected to generate 1.75 times less return on investment than Axalta Coating. But when comparing it to its historical volatility, STANLN 32 17 APR 25 is 11.86 times less risky than Axalta Coating. It trades about 0.4 of its potential returns per unit of risk. Axalta Coating Systems is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,100 in Axalta Coating Systems on September 15, 2024 and sell it today you would earn a total of 723.00 from holding Axalta Coating Systems or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 19.7% |
| Values | Daily Returns |
STANLN 32 17 APR 25 vs. Axalta Coating Systems
Performance |
| Timeline |
| STANLN 32 17 |
| Axalta Coating Systems |
STANLN and Axalta Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANLN and Axalta Coating
The main advantage of trading using opposite STANLN and Axalta Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANLN position performs unexpectedly, Axalta Coating 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 Axalta Coating will offset losses from the drop in Axalta Coating's long position.| STANLN vs. Axalta Coating Systems | STANLN vs. Eastman Chemical | STANLN vs. Ecovyst | STANLN vs. Willscot Mobile Mini |
| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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