Correlation Between AdvanSix and Sisecam Resources

Can any of the company-specific risk be diversified away by investing in both AdvanSix and Sisecam Resources 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 AdvanSix and Sisecam Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AdvanSix and Sisecam Resources LP, you can compare the effects of market volatilities on AdvanSix and Sisecam Resources 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 AdvanSix with a short position of Sisecam Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvanSix and Sisecam Resources.

Diversification Opportunities for AdvanSix and Sisecam Resources

0.0

Correlation Coefficient

AdvanSix  Sisecam Resources

Pay attention - limited upside

The 3 months correlation between AdvanSix and Sisecam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AdvanSix and Sisecam Resources LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sisecam Resources and AdvanSix 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 AdvanSix are associated (or correlated) with Sisecam Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sisecam Resources has no effect on the direction of AdvanSix i.e., AdvanSix and Sisecam Resources go up and down completely randomly.

Pair Corralation between AdvanSix and Sisecam Resources

If you would invest (100.00) in Sisecam Resources LP on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Sisecam Resources LP or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AdvanSix  vs.  Sisecam Resources LP

AdvanSix

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvanSix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Sisecam Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sisecam Resources LP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sisecam Resources is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AdvanSix and Sisecam Resources

The main advantage of trading using opposite AdvanSix and Sisecam Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvanSix position performs unexpectedly, Sisecam Resources 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 Sisecam Resources will offset losses from the drop in Sisecam Resources' long position.

The idea behind AdvanSix and Sisecam Resources LP 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.