Correlation Between Sisecam Resources and Lsb Industries

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

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

Diversification Opportunities for Sisecam Resources and Lsb Industries

0.0

Correlation Coefficient

Sisecam Resources  Lsb Industries

Pay attention - limited upside

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

Pair Corralation between Sisecam Resources and Lsb Industries

If you would invest (100.00) in Sisecam Resources LP on December 28, 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

Sisecam Resources LP  vs.  Lsb Industries

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.

Lsb Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lsb Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lsb Industries is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sisecam Resources and Lsb Industries

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

The idea behind Sisecam Resources LP and Lsb Industries 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.