Correlation Between USWE SPORTS and Air Liquide
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and Air Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Air Liquide SA, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of Air Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Air Liquide.
Diversification Opportunities for USWE SPORTS and Air Liquide
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USWE and Air is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Air Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Liquide SA and USWE SPORTS 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 USWE SPORTS AB 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 SA has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and Air Liquide go up and down completely randomly.
Pair Corralation between USWE SPORTS and Air Liquide
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the Air Liquide. In addition to that, USWE SPORTS is 3.05 times more volatile than Air Liquide SA. It trades about -0.03 of its total potential returns per unit of risk. Air Liquide SA is currently generating about 0.05 per unit of volatility. If you would invest 11,729 in Air Liquide SA on September 13, 2024 and sell it today you would earn a total of 4,271 from holding Air Liquide SA or generate 36.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
USWE SPORTS AB vs. Air Liquide SA
Performance |
| Timeline |
| USWE SPORTS AB |
| Air Liquide SA |
USWE SPORTS and Air Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Air Liquide
The main advantage of trading using opposite USWE SPORTS and Air Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. Superior Plus Corp | USWE SPORTS vs. SIVERS SEMICONDUCTORS AB | USWE SPORTS vs. Norsk Hydro ASA | USWE SPORTS vs. Reliance Steel Aluminum |
| Air Liquide vs. SPORTING | Air Liquide vs. USWE SPORTS AB | Air Liquide vs. Transport International Holdings | Air Liquide vs. AGNC INVESTMENT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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