Correlation Between A Schulman and E I

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

By analyzing existing cross correlation between A Schulman and E I du, you can compare the effects of market volatilities on A Schulman and E I 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 A Schulman with a short position of E I. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Schulman and E I.

Diversification Opportunities for A Schulman and E I

0.31

Correlation Coefficient

A Schulman  E I

Weak diversification

The 3 months correlation between SLMNP and CTA-PA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding A Schulman and E I du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E I du and A Schulman 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 A Schulman are associated (or correlated) with E I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E I du has no effect on the direction of A Schulman i.e., A Schulman and E I go up and down completely randomly.

Pair Corralation between A Schulman and E I

Assuming the 90 days horizon A Schulman is expected to generate 2.4 times more return on investment than E I. However, A Schulman is 2.4 times more volatile than E I du. It trades about 0.05 of its potential returns per unit of risk. E I du is currently generating about 0.1 per unit of risk. If you would invest  87,492  in A Schulman on December 29, 2024 and sell it today you would earn a total of  4,408  from holding A Schulman or generate 5.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.33%
Values	Daily Returns

A Schulman  vs.  E I du

A Schulman

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in A Schulman are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, A Schulman may actually be approaching a critical reversion point that can send shares even higher in April 2025.

E I du

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in E I du are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, E I is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with A Schulman and E I

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

The idea behind A Schulman and E I du 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.