Correlation Between Trinseo SA and J Star
Can any of the company-specific risk be diversified away by investing in both Trinseo SA and J Star 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 Trinseo SA and J Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trinseo SA and J Star Holding Co, you can compare the effects of market volatilities on Trinseo SA and J Star 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 Trinseo SA with a short position of J Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trinseo SA and J Star.
Diversification Opportunities for Trinseo SA and J Star
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Trinseo and YMAT is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Trinseo SA and J Star Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Star Holding and Trinseo SA 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 Trinseo SA are associated (or correlated) with J Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Star Holding has no effect on the direction of Trinseo SA i.e., Trinseo SA and J Star go up and down completely randomly.
Pair Corralation between Trinseo SA and J Star
Considering the 90-day investment horizon Trinseo SA is expected to under-perform the J Star. In addition to that, Trinseo SA is 1.15 times more volatile than J Star Holding Co. It trades about -0.21 of its total potential returns per unit of risk. J Star Holding Co is currently generating about -0.17 per unit of volatility. If you would invest 119.00 in J Star Holding Co on October 9, 2025 and sell it today you would lose (67.00) from holding J Star Holding Co or give up 56.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trinseo SA vs. J Star Holding Co
Performance |
| Timeline |
| Trinseo SA |
| J Star Holding |
Trinseo SA and J Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trinseo SA and J Star
The main advantage of trading using opposite Trinseo SA and J Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trinseo SA position performs unexpectedly, J Star 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 J Star will offset losses from the drop in J Star's long position.| Trinseo SA vs. Northern Technologies | Trinseo SA vs. Alto Ingredients | Trinseo SA vs. Loop Industries | Trinseo SA vs. Solitario Exploration Royalty |
| J Star vs. SenesTech | J Star vs. Algoma Steel Group | J Star vs. Electra Battery Materials | J Star vs. Blue Gold Limited |
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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