Correlation Between Sanyo Chemical and AT S
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical and AT S 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 Sanyo Chemical and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and AT S Austria, you can compare the effects of market volatilities on Sanyo Chemical and AT S 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 Sanyo Chemical with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and AT S.
Diversification Opportunities for Sanyo Chemical and AT S
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanyo and AUS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and Sanyo Chemical 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 Sanyo Chemical Industries are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Sanyo Chemical i.e., Sanyo Chemical and AT S go up and down completely randomly.
Pair Corralation between Sanyo Chemical and AT S
Assuming the 90 days horizon Sanyo Chemical Industries is expected to generate 0.46 times more return on investment than AT S. However, Sanyo Chemical Industries is 2.19 times less risky than AT S. It trades about -0.01 of its potential returns per unit of risk. AT S Austria is currently generating about -0.04 per unit of risk. If you would invest 2,800 in Sanyo Chemical Industries on September 12, 2024 and sell it today you would lose (300.00) from holding Sanyo Chemical Industries or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. AT S Austria
Performance |
| Timeline |
| Sanyo Chemical Industries |
| AT S Austria |
Sanyo Chemical and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and AT S
The main advantage of trading using opposite Sanyo Chemical and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| Sanyo Chemical vs. Lifeway Foods | Sanyo Chemical vs. Iridium Communications | Sanyo Chemical vs. NISSIN FOODS HLDGS | Sanyo Chemical vs. Moneysupermarket Group PLC |
| AT S vs. Mitsubishi Gas Chemical | AT S vs. Silicon Motion Technology | AT S vs. Sanyo Chemical Industries | AT S vs. CARSALESCOM |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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