Correlation Between SANOK RUBBER and Air Products
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER 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 SANOK RUBBER and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Air Products and, you can compare the effects of market volatilities on SANOK RUBBER 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 SANOK RUBBER with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Air Products.
Diversification Opportunities for SANOK RUBBER and Air Products
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SANOK and Air is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and SANOK RUBBER 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 SANOK RUBBER ZY 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 has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Air Products go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Air Products
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 1.49 times more return on investment than Air Products. However, SANOK RUBBER is 1.49 times more volatile than Air Products and. It trades about 0.08 of its potential returns per unit of risk. Air Products and is currently generating about -0.1 per unit of risk. If you would invest 511.00 in SANOK RUBBER ZY on November 27, 2024 and sell it today you would earn a total of 19.00 from holding SANOK RUBBER ZY or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Air Products and
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Air Products |
SANOK RUBBER and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Air Products
The main advantage of trading using opposite SANOK RUBBER and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER 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.| SANOK RUBBER vs. BII Railway Transportation | SANOK RUBBER vs. GUILD ESPORTS PLC | SANOK RUBBER vs. GERATHERM MEDICAL | SANOK RUBBER vs. SCIENCE IN SPORT |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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