Correlation Between Sekisui Chemical and GOLDGROUP MINING

Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical and GOLDGROUP MINING 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 GOLDGROUP MINING 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 GOLDGROUP MINING INC, you can compare the effects of market volatilities on Sekisui Chemical and GOLDGROUP MINING 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 GOLDGROUP MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and GOLDGROUP MINING.

Diversification Opportunities for Sekisui Chemical and GOLDGROUP MINING

0.48

Correlation Coefficient

Sekisui Chemical  GOLDGROUP MINING

Very weak diversification

The 3 months correlation between Sekisui and GOLDGROUP is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co and GOLDGROUP MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDGROUP MINING INC 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 GOLDGROUP MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDGROUP MINING INC has no effect on the direction of Sekisui Chemical i.e., Sekisui Chemical and GOLDGROUP MINING go up and down completely randomly.

Pair Corralation between Sekisui Chemical and GOLDGROUP MINING

Assuming the 90 days horizon Sekisui Chemical is expected to generate 8.76 times less return on investment than GOLDGROUP MINING. But when comparing it to its historical volatility, Sekisui Chemical Co is 2.39 times less risky than GOLDGROUP MINING. It trades about 0.02 of its potential returns per unit of risk. GOLDGROUP MINING INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  54.00  in GOLDGROUP MINING INC on April 13, 2025 and sell it today you would earn a total of  8.00  from holding GOLDGROUP MINING INC or generate 14.81% return on investment over 90 days.

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

Sekisui Chemical Co  vs.  GOLDGROUP MINING INC

Sekisui Chemical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sekisui Chemical Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sekisui Chemical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

GOLDGROUP MINING INC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDGROUP MINING INC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GOLDGROUP MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sekisui Chemical and GOLDGROUP MINING

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

The idea behind Sekisui Chemical Co and GOLDGROUP MINING INC 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.