Correlation Between Air Products and Andrews Sykes
Can any of the company-specific risk be diversified away by investing in both Air Products and Andrews Sykes 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 Air Products and Andrews Sykes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Products Chemicals and Andrews Sykes Group, you can compare the effects of market volatilities on Air Products and Andrews Sykes 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 Air Products with a short position of Andrews Sykes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Andrews Sykes.
Diversification Opportunities for Air Products and Andrews Sykes
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Andrews is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Air Products Chemicals and Andrews Sykes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andrews Sykes Group and Air Products 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 Air Products Chemicals are associated (or correlated) with Andrews Sykes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andrews Sykes Group has no effect on the direction of Air Products i.e., Air Products and Andrews Sykes go up and down completely randomly.
Pair Corralation between Air Products and Andrews Sykes
Assuming the 90 days trading horizon Air Products Chemicals is expected to generate 0.79 times more return on investment than Andrews Sykes. However, Air Products Chemicals is 1.26 times less risky than Andrews Sykes. It trades about 0.37 of its potential returns per unit of risk. Andrews Sykes Group is currently generating about -0.11 per unit of risk. If you would invest 30,594 in Air Products Chemicals on September 4, 2024 and sell it today you would earn a total of 2,698 from holding Air Products Chemicals or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Products Chemicals vs. Andrews Sykes Group
Performance |
| Timeline |
| Air Products Chemicals |
| Andrews Sykes Group |
Air Products and Andrews Sykes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Andrews Sykes
The main advantage of trading using opposite Air Products and Andrews Sykes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Andrews Sykes 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 Andrews Sykes will offset losses from the drop in Andrews Sykes' long position.| Air Products vs. New Residential Investment | Air Products vs. Future Metals NL | Air Products vs. European Metals Holdings | Air Products vs. Golden Metal Resources |
| Andrews Sykes vs. Cornish Metals | Andrews Sykes vs. Broadcom | Andrews Sykes vs. Trainline Plc | Andrews Sykes vs. GreenX Metals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |