Correlation Between Munters Group and SHIN ETSU
Can any of the company-specific risk be diversified away by investing in both Munters Group and SHIN ETSU 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 Munters Group and SHIN ETSU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munters Group AB and SHIN ETSU CHEMICAL , you can compare the effects of market volatilities on Munters Group and SHIN ETSU 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 Munters Group with a short position of SHIN ETSU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munters Group and SHIN ETSU.
Diversification Opportunities for Munters Group and SHIN ETSU
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Munters and SHIN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Munters Group AB and SHIN ETSU CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIN ETSU CHEMICAL and Munters Group 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 Munters Group AB are associated (or correlated) with SHIN ETSU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIN ETSU CHEMICAL has no effect on the direction of Munters Group i.e., Munters Group and SHIN ETSU go up and down completely randomly.
Pair Corralation between Munters Group and SHIN ETSU
Assuming the 90 days horizon Munters Group AB is expected to generate 3.23 times more return on investment than SHIN ETSU. However, Munters Group is 3.23 times more volatile than SHIN ETSU CHEMICAL . It trades about 0.15 of its potential returns per unit of risk. SHIN ETSU CHEMICAL is currently generating about 0.06 per unit of risk. If you would invest 1,086 in Munters Group AB on September 9, 2025 and sell it today you would earn a total of 554.00 from holding Munters Group AB or generate 51.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Munters Group AB vs. SHIN ETSU CHEMICAL
Performance |
| Timeline |
| Munters Group AB |
| SHIN ETSU CHEMICAL |
Munters Group and SHIN ETSU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munters Group and SHIN ETSU
The main advantage of trading using opposite Munters Group and SHIN ETSU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munters Group position performs unexpectedly, SHIN ETSU 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 SHIN ETSU will offset losses from the drop in SHIN ETSU's long position.| Munters Group vs. ADDUS HOMECARE | Munters Group vs. BII Railway Transportation | Munters Group vs. Corporate Office Properties | Munters Group vs. Sporttotal AG |
| SHIN ETSU vs. Vulcan Materials | SHIN ETSU vs. Sumitomo Rubber Industries | SHIN ETSU vs. Rayonier Advanced Materials | SHIN ETSU vs. EAGLE MATERIALS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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