Correlation Between Bet At and Air Products
Can any of the company-specific risk be diversified away by investing in both Bet At and Air Products 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 Bet At and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Air Products Chemicals, you can compare the effects of market volatilities on Bet At and Air Products 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 Bet At with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Air Products.
Diversification Opportunities for Bet At and Air Products
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet and Air is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and Bet At 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 bet at home AG are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of Bet At i.e., Bet At and Air Products go up and down completely randomly.
Pair Corralation between Bet At and Air Products
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Air Products. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.43 times less risky than Air Products. The stock trades about -0.03 of its potential returns per unit of risk. The Air Products Chemicals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 29,283 in Air Products Chemicals on September 23, 2024 and sell it today you would earn a total of 37.00 from holding Air Products Chemicals or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
bet at home AG vs. Air Products Chemicals
Performance |
| Timeline |
| bet at home |
| Air Products Chemicals |
Bet At and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Air Products
The main advantage of trading using opposite Bet At and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| Bet At vs. Southwest Airlines Co | Bet At vs. Roadside Real Estate | Bet At vs. Broadridge Financial Solutions | Bet At vs. Morgan Advanced Materials |
| Air Products vs. FC Investment Trust | Air Products vs. Axway Software SA | Air Products vs. Livermore Investments Group | Air Products vs. Atresmedia |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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