Correlation Between Radiant Cash and Amines Plasticizers

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

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

Diversification Opportunities for Radiant Cash and Amines Plasticizers

-0.38

Correlation Coefficient

Radiant Cash  Amines Plasticizers

Very good diversification

The 3 months correlation between Radiant and Amines is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Cash Management and Amines Plasticizers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amines Plasticizers and Radiant Cash 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 Radiant Cash Management are associated (or correlated) with Amines Plasticizers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amines Plasticizers has no effect on the direction of Radiant Cash i.e., Radiant Cash and Amines Plasticizers go up and down completely randomly.

Pair Corralation between Radiant Cash and Amines Plasticizers

Assuming the 90 days trading horizon Radiant Cash Management is expected to under-perform the Amines Plasticizers. But the stock apears to be less risky and, when comparing its historical volatility, Radiant Cash Management is 1.05 times less risky than Amines Plasticizers. The stock trades about -0.09 of its potential returns per unit of risk. The Amines Plasticizers Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  22,405  in Amines Plasticizers Limited on April 24, 2025 and sell it today you would earn a total of  1,319  from holding Amines Plasticizers Limited or generate 5.89% return on investment over 90 days.

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

Radiant Cash Management  vs.  Amines Plasticizers Limited

Radiant Cash Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Radiant Cash Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Amines Plasticizers may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Radiant Cash and Amines Plasticizers

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

The idea behind Radiant Cash Management and Amines Plasticizers 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.