Correlation Between Sumitomo Chemical and Taskus

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

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

Diversification Opportunities for Sumitomo Chemical and Taskus

0.6

Correlation Coefficient

Sumitomo Chemical  Taskus

Poor diversification

The 3 months correlation between Sumitomo and Taskus is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Chemical Co and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc and Sumitomo 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 Sumitomo Chemical Co are associated (or correlated) with Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of Sumitomo Chemical i.e., Sumitomo Chemical and Taskus go up and down completely randomly.

Pair Corralation between Sumitomo Chemical and Taskus

Assuming the 90 days horizon Sumitomo Chemical Co is expected to generate 0.6 times more return on investment than Taskus. However, Sumitomo Chemical Co is 1.66 times less risky than Taskus. It trades about 0.01 of its potential returns per unit of risk. Taskus Inc is currently generating about -0.25 per unit of risk. If you would invest  1,502  in Sumitomo Chemical Co on August 29, 2025 and sell it today you would earn a total of  0.00  from holding Sumitomo Chemical Co or generate 0.0% return on investment over 90 days.

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

Sumitomo Chemical Co  vs.  Taskus Inc

Sumitomo Chemical

Risk-Adjusted Performance

Weakest

Over the last 90 days Sumitomo Chemical Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Sumitomo Chemical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Taskus Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Taskus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sumitomo Chemical and Taskus

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

The idea behind Sumitomo Chemical Co and Taskus 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.