Correlation Between Union Medical and Sumitomo Chemical

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

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

Diversification Opportunities for Union Medical and Sumitomo Chemical

0.0

Correlation Coefficient

Union Medical  Sumitomo Chemical

Pay attention - limited upside

The 3 months correlation between Union and Sumitomo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Union Medical Healthcare and Sumitomo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Chemical and Union Medical 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 Union Medical Healthcare are associated (or correlated) with Sumitomo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Chemical has no effect on the direction of Union Medical i.e., Union Medical and Sumitomo Chemical go up and down completely randomly.

Pair Corralation between Union Medical and Sumitomo Chemical

If you would invest  8.60  in Union Medical Healthcare on September 10, 2025 and sell it today you would earn a total of  0.00  from holding Union Medical Healthcare or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Union Medical Healthcare  vs.  Sumitomo Chemical Co

Union Medical Healthcare

Risk-Adjusted Performance

Weakest

Over the last 90 days Union Medical Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Union Medical is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 latest weak performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Union Medical and Sumitomo Chemical

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

The idea behind Union Medical Healthcare and Sumitomo Chemical Co 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.