Correlation Between Mitsui Chemicals and INTEGR SILICON

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

By analyzing existing cross correlation between Mitsui Chemicals and INTEGR SILICON SOL, you can compare the effects of market volatilities on Mitsui Chemicals and INTEGR SILICON 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 Mitsui Chemicals with a short position of INTEGR SILICON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui Chemicals and INTEGR SILICON.

Diversification Opportunities for Mitsui Chemicals and INTEGR SILICON

0.0

Correlation Coefficient

Mitsui Chemicals  INTEGR SILICON

Pay attention - limited upside

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

Pair Corralation between Mitsui Chemicals and INTEGR SILICON

If you would invest  2,036  in Mitsui Chemicals on December 29, 2024 and sell it today you would earn a total of  84.00  from holding Mitsui Chemicals or generate 4.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Mitsui Chemicals  vs.  INTEGR SILICON SOL

Mitsui Chemicals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsui Chemicals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Mitsui Chemicals is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

INTEGR SILICON SOL

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mitsui Chemicals and INTEGR SILICON

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

The idea behind Mitsui Chemicals and INTEGR SILICON SOL 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.