Correlation Between AIR LIQUIDE and SOGECLAIR
Can any of the company-specific risk be diversified away by investing in both AIR LIQUIDE and SOGECLAIR 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 SOGECLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR LIQUIDE ADR and SOGECLAIR SA INH, you can compare the effects of market volatilities on AIR LIQUIDE and SOGECLAIR 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 SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR LIQUIDE and SOGECLAIR.
Diversification Opportunities for AIR LIQUIDE and SOGECLAIR
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AIR and SOGECLAIR is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AIR LIQUIDE ADR and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH 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 ADR are associated (or correlated) with SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of AIR LIQUIDE i.e., AIR LIQUIDE and SOGECLAIR go up and down completely randomly.
Pair Corralation between AIR LIQUIDE and SOGECLAIR
Assuming the 90 days trading horizon AIR LIQUIDE ADR is expected to under-perform the SOGECLAIR. But the stock apears to be less risky and, when comparing its historical volatility, AIR LIQUIDE ADR is 2.14 times less risky than SOGECLAIR. The stock trades about -0.03 of its potential returns per unit of risk. The SOGECLAIR SA INH is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,755 in SOGECLAIR SA INH on September 22, 2024 and sell it today you would earn a total of 15.00 from holding SOGECLAIR SA INH or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIR LIQUIDE ADR vs. SOGECLAIR SA INH
Performance |
| Timeline |
| AIR LIQUIDE ADR |
| SOGECLAIR SA INH |
AIR LIQUIDE and SOGECLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR LIQUIDE and SOGECLAIR
The main advantage of trading using opposite AIR LIQUIDE and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR LIQUIDE position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.| AIR LIQUIDE vs. Cleanaway Waste Management | AIR LIQUIDE vs. GREENX METALS LTD | AIR LIQUIDE vs. AGF Management Limited | AIR LIQUIDE vs. Brockhaus Capital Management |
| SOGECLAIR vs. Superior Plus Corp | SOGECLAIR vs. Origin Agritech | SOGECLAIR vs. INTUITIVE SURGICAL | SOGECLAIR vs. Intel |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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