Correlation Between FIRST SAVINGS and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both FIRST SAVINGS 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 FIRST SAVINGS and AIR LIQUIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SAVINGS FINL and AIR LIQUIDE ADR, you can compare the effects of market volatilities on FIRST SAVINGS 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 FIRST SAVINGS with a short position of AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SAVINGS and AIR LIQUIDE.
Diversification Opportunities for FIRST SAVINGS and AIR LIQUIDE
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and AIR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SAVINGS FINL 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 FIRST SAVINGS 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 FIRST SAVINGS FINL 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 FIRST SAVINGS i.e., FIRST SAVINGS and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between FIRST SAVINGS and AIR LIQUIDE
Assuming the 90 days horizon FIRST SAVINGS is expected to generate 5.64 times less return on investment than AIR LIQUIDE. In addition to that, FIRST SAVINGS is 2.13 times more volatile than AIR LIQUIDE ADR. It trades about 0.0 of its total potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about 0.01 per unit of volatility. If you would invest 3,240 in AIR LIQUIDE ADR on November 1, 2024 and sell it today you would earn a total of 20.00 from holding AIR LIQUIDE ADR or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SAVINGS FINL vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| FIRST SAVINGS FINL |
| AIR LIQUIDE ADR |
FIRST SAVINGS and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SAVINGS and AIR LIQUIDE
The main advantage of trading using opposite FIRST SAVINGS and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SAVINGS 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.| FIRST SAVINGS vs. Luckin Coffee | FIRST SAVINGS vs. PACIFIC ONLINE | FIRST SAVINGS vs. CARSALESCOM | FIRST SAVINGS vs. MagnaChip Semiconductor Corp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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