Correlation Between Sensient Technologies and HIMARK
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By analyzing existing cross correlation between Sensient Technologies and HIMARK 145 10 MAY 26, you can compare the effects of market volatilities on Sensient Technologies and HIMARK 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 Sensient Technologies with a short position of HIMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and HIMARK.
Diversification Opportunities for Sensient Technologies and HIMARK
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sensient and HIMARK is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and HIMARK 145 10 MAY 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIMARK 145 10 and Sensient Technologies 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 Sensient Technologies are associated (or correlated) with HIMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIMARK 145 10 has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and HIMARK go up and down completely randomly.
Pair Corralation between Sensient Technologies and HIMARK
Considering the 90-day investment horizon Sensient Technologies is expected to generate 1.28 times less return on investment than HIMARK. In addition to that, Sensient Technologies is 2.57 times more volatile than HIMARK 145 10 MAY 26. It trades about 0.01 of its total potential returns per unit of risk. HIMARK 145 10 MAY 26 is currently generating about 0.04 per unit of volatility. If you would invest 8,919 in HIMARK 145 10 MAY 26 on October 27, 2024 and sell it today you would earn a total of 230.00 from holding HIMARK 145 10 MAY 26 or generate 2.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 24.9% |
Values | Daily Returns |
Sensient Technologies vs. HIMARK 145 10 MAY 26
Performance |
Timeline |
Sensient Technologies |
HIMARK 145 10 |
Sensient Technologies and HIMARK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sensient Technologies and HIMARK
The main advantage of trading using opposite Sensient Technologies and HIMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies position performs unexpectedly, HIMARK 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 HIMARK will offset losses from the drop in HIMARK's long position.Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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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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