Correlation Between Sensient Technologies and ACCESS Newswire

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

By analyzing existing cross correlation between Sensient Technologies and ACCESS Newswire, you can compare the effects of market volatilities on Sensient Technologies and ACCESS Newswire 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 Sensient Technologies with a short position of ACCESS Newswire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and ACCESS Newswire.

Diversification Opportunities for Sensient Technologies and ACCESS Newswire

0.5

Correlation Coefficient

Sensient Technologies  ACCESS Newswire

Very weak diversification

The 3 months correlation between Sensient and ACCESS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and ACCESS Newswire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCESS Newswire and Sensient Technologies 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 Sensient Technologies are associated (or correlated) with ACCESS Newswire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCESS Newswire has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and ACCESS Newswire go up and down completely randomly.

Pair Corralation between Sensient Technologies and ACCESS Newswire

Considering the 90-day investment horizon Sensient Technologies is expected to generate 0.46 times more return on investment than ACCESS Newswire. However, Sensient Technologies is 2.16 times less risky than ACCESS Newswire. It trades about 0.23 of its potential returns per unit of risk. ACCESS Newswire is currently generating about 0.06 per unit of risk. If you would invest  9,501  in Sensient Technologies on May 25, 2025 and sell it today you would earn a total of  1,970  from holding Sensient Technologies or generate 20.73% return on investment over 90 days.

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

Sensient Technologies  vs.  ACCESS Newswire

Sensient Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sensient Technologies are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Sensient Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

ACCESS Newswire

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ACCESS Newswire are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, ACCESS Newswire may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Sensient Technologies and ACCESS Newswire

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

The idea behind Sensient Technologies and ACCESS Newswire 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.