Correlation Between Air Liquide and Soken Chemical
Can any of the company-specific risk be diversified away by investing in both Air Liquide and Soken Chemical 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 Air Liquide and Soken Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Liquide SA and Soken Chemical Engineering, you can compare the effects of market volatilities on Air Liquide and Soken Chemical 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 Air Liquide with a short position of Soken Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Liquide and Soken Chemical.
Diversification Opportunities for Air Liquide and Soken Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Soken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Liquide SA and Soken Chemical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soken Chemical Engin and Air 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 Air Liquide SA are associated (or correlated) with Soken Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soken Chemical Engin has no effect on the direction of Air Liquide i.e., Air Liquide and Soken Chemical go up and down completely randomly.
Pair Corralation between Air Liquide and Soken Chemical
If you would invest 12,262 in Air Liquide SA on August 24, 2024 and sell it today you would earn a total of 3,768 from holding Air Liquide SA or generate 30.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Air Liquide SA vs. Soken Chemical Engineering
Performance |
| Timeline |
| Air Liquide SA |
| Soken Chemical Engin |
Air Liquide and Soken Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Liquide and Soken Chemical
The main advantage of trading using opposite Air Liquide and Soken Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Liquide position performs unexpectedly, Soken Chemical 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 Soken Chemical will offset losses from the drop in Soken Chemical's long position.| Air Liquide vs. North American Construction | Air Liquide vs. G III Apparel Group | Air Liquide vs. RYU Apparel | Air Liquide vs. Algonquin Power Utilities |
| Soken Chemical vs. Air Liquide SA | Soken Chemical vs. PPG Industries | Soken Chemical vs. Albemarle | Soken Chemical vs. Superior Plus Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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