Correlation Between Amines Plasticizers and Samhi Hotels

Can any of the company-specific risk be diversified away by investing in both Amines Plasticizers and Samhi Hotels 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 Amines Plasticizers and Samhi Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amines Plasticizers Limited and Samhi Hotels Limited, you can compare the effects of market volatilities on Amines Plasticizers and Samhi Hotels 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 Amines Plasticizers with a short position of Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amines Plasticizers and Samhi Hotels.

Diversification Opportunities for Amines Plasticizers and Samhi Hotels

0.8

Correlation Coefficient

Amines Plasticizers  Samhi Hotels

Very poor diversification

The 3 months correlation between Amines and Samhi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amines Plasticizers Limited and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi Hotels Limited and Amines Plasticizers 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 Amines Plasticizers Limited are associated (or correlated) with Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of Amines Plasticizers i.e., Amines Plasticizers and Samhi Hotels go up and down completely randomly.

Pair Corralation between Amines Plasticizers and Samhi Hotels

Assuming the 90 days trading horizon Amines Plasticizers is expected to generate 2.29 times less return on investment than Samhi Hotels. In addition to that, Amines Plasticizers is 1.02 times more volatile than Samhi Hotels Limited. It trades about 0.08 of its total potential returns per unit of risk. Samhi Hotels Limited is currently generating about 0.19 per unit of volatility. If you would invest  17,740  in Samhi Hotels Limited on May 5, 2025 and sell it today you would earn a total of  5,017  from holding Samhi Hotels Limited or generate 28.28% return on investment over 90 days.

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

Amines Plasticizers Limited  vs.  Samhi Hotels Limited

Amines Plasticizers

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amines Plasticizers Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting essential indicators, Amines Plasticizers may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Samhi Hotels Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Samhi Hotels Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Samhi Hotels displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amines Plasticizers and Samhi Hotels

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

The idea behind Amines Plasticizers Limited and Samhi Hotels 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.