Correlation Between CHRYSALIS INVESTMENTS and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS and AIR LIQUIDE 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 CHRYSALIS INVESTMENTS and AIR LIQUIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and AIR LIQUIDE ADR, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS and AIR LIQUIDE 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 CHRYSALIS INVESTMENTS with a short position of AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and AIR LIQUIDE.
Diversification Opportunities for CHRYSALIS INVESTMENTS and AIR LIQUIDE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHRYSALIS and AIR is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and AIR LIQUIDE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR LIQUIDE ADR and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with AIR LIQUIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR LIQUIDE ADR has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and AIR LIQUIDE
Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 1.24 times more return on investment than AIR LIQUIDE. However, CHRYSALIS INVESTMENTS is 1.24 times more volatile than AIR LIQUIDE ADR. It trades about 0.07 of its potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about 0.01 per unit of risk. If you would invest 104.00 in CHRYSALIS INVESTMENTS LTD on November 1, 2024 and sell it today you would earn a total of 6.00 from holding CHRYSALIS INVESTMENTS LTD or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| AIR LIQUIDE ADR |
CHRYSALIS INVESTMENTS and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and AIR LIQUIDE
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS position performs unexpectedly, AIR LIQUIDE 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 LIQUIDE will offset losses from the drop in AIR LIQUIDE's long position.| CHRYSALIS INVESTMENTS vs. Jupiter Fund Management | CHRYSALIS INVESTMENTS vs. Ares Management Corp | CHRYSALIS INVESTMENTS vs. Virtus Investment Partners | CHRYSALIS INVESTMENTS vs. Cleanaway Waste Management |
| AIR LIQUIDE vs. CDL INVESTMENT | AIR LIQUIDE vs. CHRYSALIS INVESTMENTS LTD | AIR LIQUIDE vs. Apollo Investment Corp | AIR LIQUIDE vs. PACIFIC ONLINE |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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