Correlation Between UNION and Sensient Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNION ELEC 39 and Sensient Technologies, you can compare the effects of market volatilities on UNION 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 UNION with a short position of Sensient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION and Sensient Technologies.
Diversification Opportunities for UNION and Sensient Technologies
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNION and Sensient is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding UNION ELEC 39 and Sensient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensient Technologies and UNION 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 UNION ELEC 39 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 UNION i.e., UNION and Sensient Technologies go up and down completely randomly.
Pair Corralation between UNION and Sensient Technologies
Assuming the 90 days trading horizon UNION ELEC 39 is expected to generate 0.75 times more return on investment than Sensient Technologies. However, UNION ELEC 39 is 1.33 times less risky than Sensient Technologies. It trades about 0.43 of its potential returns per unit of risk. Sensient Technologies is currently generating about 0.09 per unit of risk. If you would invest 8,225 in UNION ELEC 39 on September 3, 2024 and sell it today you would earn a total of 511.00 from holding UNION ELEC 39 or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
UNION ELEC 39 vs. Sensient Technologies
Performance |
| Timeline |
| UNION ELEC |
| Sensient Technologies |
UNION and Sensient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNION and Sensient Technologies
The main advantage of trading using opposite UNION and Sensient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION 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.| UNION vs. Playtika Holding Corp | UNION vs. Dave Busters Entertainment | UNION vs. Xponential Fitness | UNION vs. NL Industries |
| Sensient Technologies vs. SPACE | Sensient Technologies vs. Bayview Acquisition Corp | Sensient Technologies vs. T Rowe Price | Sensient Technologies vs. Ampleforth |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |