Correlation Between Styrenix Performance and GACM Technologies

Can any of the company-specific risk be diversified away by investing in both Styrenix Performance and GACM Technologies 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 Styrenix Performance and GACM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Styrenix Performance Materials and GACM Technologies Limited, you can compare the effects of market volatilities on Styrenix Performance and GACM Technologies 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 Styrenix Performance with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Styrenix Performance and GACM Technologies.

Diversification Opportunities for Styrenix Performance and GACM Technologies

-0.04

Correlation Coefficient

Styrenix Performance  GACM Technologies

Good diversification

The 3 months correlation between Styrenix and GACM is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Styrenix Performance Materials and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Styrenix Performance 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 Styrenix Performance Materials are associated (or correlated) with GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of Styrenix Performance i.e., Styrenix Performance and GACM Technologies go up and down completely randomly.

Pair Corralation between Styrenix Performance and GACM Technologies

Assuming the 90 days trading horizon Styrenix Performance Materials is expected to generate 0.44 times more return on investment than GACM Technologies. However, Styrenix Performance Materials is 2.3 times less risky than GACM Technologies. It trades about 0.08 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.2 per unit of risk. If you would invest  292,100  in Styrenix Performance Materials on April 20, 2025 and sell it today you would earn a total of  25,650  from holding Styrenix Performance Materials or generate 8.78% return on investment over 90 days.

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

Styrenix Performance Materials  vs.  GACM Technologies Limited

Styrenix Performance

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Styrenix Performance Materials are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Styrenix Performance may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GACM Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days GACM Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Styrenix Performance and GACM Technologies

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

The idea behind Styrenix Performance Materials and GACM Technologies 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.