Correlation Between Sekisui Chemical and GRUPO CARSO-A1

Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical and GRUPO CARSO-A1 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 Sekisui Chemical and GRUPO CARSO-A1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sekisui Chemical Co and GRUPO CARSO A1, you can compare the effects of market volatilities on Sekisui Chemical and GRUPO CARSO-A1 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 Sekisui Chemical with a short position of GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and GRUPO CARSO-A1.

Diversification Opportunities for Sekisui Chemical and GRUPO CARSO-A1

-0.3

Correlation Coefficient

Sekisui Chemical  GRUPO CARSO-A1

Very good diversification

The 3 months correlation between Sekisui and GRUPO is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 and Sekisui Chemical 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 Sekisui Chemical Co are associated (or correlated) with GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of Sekisui Chemical i.e., Sekisui Chemical and GRUPO CARSO-A1 go up and down completely randomly.

Pair Corralation between Sekisui Chemical and GRUPO CARSO-A1

Assuming the 90 days horizon Sekisui Chemical is expected to generate 1.1 times less return on investment than GRUPO CARSO-A1. But when comparing it to its historical volatility, Sekisui Chemical Co is 2.02 times less risky than GRUPO CARSO-A1. It trades about 0.02 of its potential returns per unit of risk. GRUPO CARSO A1 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  702.00  in GRUPO CARSO A1 on April 22, 2025 and sell it today you would lose (52.00) from holding GRUPO CARSO A1 or give up 7.41% of portfolio value over 90 days.

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

Sekisui Chemical Co  vs.  GRUPO CARSO A1

Sekisui Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sekisui Chemical Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sekisui Chemical is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

GRUPO CARSO A1

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GRUPO CARSO A1 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, GRUPO CARSO-A1 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sekisui Chemical and GRUPO CARSO-A1

The main advantage of trading using opposite Sekisui Chemical and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekisui Chemical position performs unexpectedly, GRUPO CARSO-A1 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 GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1's long position.

The idea behind Sekisui Chemical Co and GRUPO CARSO A1 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.