Correlation Between Amines Plasticizers and Hexa Tradex

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

By analyzing existing cross correlation between Amines Plasticizers Limited and Hexa Tradex Limited, you can compare the effects of market volatilities on Amines Plasticizers and Hexa Tradex 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 Amines Plasticizers with a short position of Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amines Plasticizers and Hexa Tradex.

Diversification Opportunities for Amines Plasticizers and Hexa Tradex

-0.27

Correlation Coefficient

Amines Plasticizers  Hexa Tradex

Very good diversification

The 3 months correlation between Amines and Hexa is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amines Plasticizers Limited and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex Limited and Amines Plasticizers 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 Amines Plasticizers Limited are associated (or correlated) with Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of Amines Plasticizers i.e., Amines Plasticizers and Hexa Tradex go up and down completely randomly.

Pair Corralation between Amines Plasticizers and Hexa Tradex

Assuming the 90 days trading horizon Amines Plasticizers Limited is expected to generate 1.38 times more return on investment than Hexa Tradex. However, Amines Plasticizers is 1.38 times more volatile than Hexa Tradex Limited. It trades about 0.03 of its potential returns per unit of risk. Hexa Tradex Limited is currently generating about -0.09 per unit of risk. If you would invest  23,491  in Amines Plasticizers Limited on April 22, 2025 and sell it today you would earn a total of  580.00  from holding Amines Plasticizers Limited or generate 2.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amines Plasticizers Limited  vs.  Hexa Tradex Limited

Amines Plasticizers

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amines Plasticizers Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Amines Plasticizers is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Hexa Tradex Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hexa Tradex Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Amines Plasticizers and Hexa Tradex

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

The idea behind Amines Plasticizers Limited and Hexa Tradex Limited 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.