Correlation Between SOGECLAIR and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR 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 SOGECLAIR and AIR LIQUIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and AIR LIQUIDE ADR, you can compare the effects of market volatilities on SOGECLAIR 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 SOGECLAIR with a short position of AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and AIR LIQUIDE.
Diversification Opportunities for SOGECLAIR and AIR LIQUIDE
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOGECLAIR and AIR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH 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 SOGECLAIR 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 SOGECLAIR SA INH 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 SOGECLAIR i.e., SOGECLAIR and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between SOGECLAIR and AIR LIQUIDE
Assuming the 90 days horizon SOGECLAIR SA INH is expected to generate 2.59 times more return on investment than AIR LIQUIDE. However, SOGECLAIR is 2.59 times more volatile than AIR LIQUIDE ADR. It trades about 0.29 of its potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about 0.19 per unit of risk. If you would invest 1,915 in SOGECLAIR SA INH on December 11, 2024 and sell it today you would earn a total of 425.00 from holding SOGECLAIR SA INH or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| SOGECLAIR SA INH |
| AIR LIQUIDE ADR |
SOGECLAIR and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and AIR LIQUIDE
The main advantage of trading using opposite SOGECLAIR and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR 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.| SOGECLAIR vs. PLAYMATES TOYS | SOGECLAIR vs. Universal Display | SOGECLAIR vs. LG Display Co | SOGECLAIR vs. FUYO GENERAL LEASE |
| AIR LIQUIDE vs. MAVEN WIRELESS SWEDEN | AIR LIQUIDE vs. ALBIS LEASING AG | AIR LIQUIDE vs. OFFICE DEPOT | AIR LIQUIDE vs. UNITED RENTALS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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