Correlation Between USWE SPORTS and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and AIR PRODCHEMICALS 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 PRODCHEMICALS 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 PRODCHEMICALS, you can compare the effects of market volatilities on USWE SPORTS and AIR PRODCHEMICALS 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 PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and AIR PRODCHEMICALS.
Diversification Opportunities for USWE SPORTS and AIR PRODCHEMICALS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between USWE and AIR is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS 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 PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between USWE SPORTS and AIR PRODCHEMICALS
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 1.99 times more return on investment than AIR PRODCHEMICALS. However, USWE SPORTS is 1.99 times more volatile than AIR PRODCHEMICALS. It trades about 0.31 of its potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.49 per unit of risk. If you would invest 74.00 in USWE SPORTS AB on October 30, 2024 and sell it today you would earn a total of 11.00 from holding USWE SPORTS AB or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| USWE SPORTS AB |
| AIR PRODCHEMICALS |
USWE SPORTS and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and AIR PRODCHEMICALS
The main advantage of trading using opposite USWE SPORTS and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, AIR PRODCHEMICALS 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 PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS's long position.| USWE SPORTS vs. GAMESTOP | USWE SPORTS vs. Media and Games | USWE SPORTS vs. Boyd Gaming | USWE SPORTS vs. PARKEN Sport Entertainment |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |