Correlation Between LAir Liquide and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both LAir Liquide and FORWARD AIR 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 LAir Liquide and FORWARD AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAir Liquide SA and FORWARD AIR P, you can compare the effects of market volatilities on LAir Liquide and FORWARD AIR 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 LAir Liquide with a short position of FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAir Liquide and FORWARD AIR.
Diversification Opportunities for LAir Liquide and FORWARD AIR
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between LAir and FORWARD is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding LAir Liquide SA and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P and LAir Liquide 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 LAir Liquide SA are associated (or correlated) with FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of LAir Liquide i.e., LAir Liquide and FORWARD AIR go up and down completely randomly.
Pair Corralation between LAir Liquide and FORWARD AIR
Assuming the 90 days trading horizon LAir Liquide SA is expected to generate 0.31 times more return on investment than FORWARD AIR. However, LAir Liquide SA is 3.21 times less risky than FORWARD AIR. It trades about 0.04 of its potential returns per unit of risk. FORWARD AIR P is currently generating about -0.06 per unit of risk. If you would invest 15,886 in LAir Liquide SA on September 13, 2024 and sell it today you would earn a total of 92.00 from holding LAir Liquide SA or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAir Liquide SA vs. FORWARD AIR P
Performance |
| Timeline |
| LAir Liquide SA |
| FORWARD AIR P |
LAir Liquide and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAir Liquide and FORWARD AIR
The main advantage of trading using opposite LAir Liquide and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAir Liquide position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.| LAir Liquide vs. Apple Inc | LAir Liquide vs. Apple Inc | LAir Liquide vs. Apple Inc | LAir Liquide vs. Apple Inc |
| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |