Correlation Between AIR LIQUIDE and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both AIR LIQUIDE and Platinum Investment 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 Platinum Investment 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 Platinum Investment Management, you can compare the effects of market volatilities on AIR LIQUIDE and Platinum Investment 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 Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR LIQUIDE and Platinum Investment.
Diversification Opportunities for AIR LIQUIDE and Platinum Investment
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIR and Platinum is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AIR LIQUIDE ADR and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment 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 Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of AIR LIQUIDE i.e., AIR LIQUIDE and Platinum Investment go up and down completely randomly.
Pair Corralation between AIR LIQUIDE and Platinum Investment
Assuming the 90 days trading horizon AIR LIQUIDE ADR is expected to generate 0.39 times more return on investment than Platinum Investment. However, AIR LIQUIDE ADR is 2.59 times less risky than Platinum Investment. It trades about 0.18 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.08 per unit of risk. If you would invest 3,120 in AIR LIQUIDE ADR on December 11, 2024 and sell it today you would earn a total of 400.00 from holding AIR LIQUIDE ADR or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIR LIQUIDE ADR vs. Platinum Investment Management
Performance |
| Timeline |
| AIR LIQUIDE ADR |
| Platinum Investment |
AIR LIQUIDE and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR LIQUIDE and Platinum Investment
The main advantage of trading using opposite AIR LIQUIDE and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR LIQUIDE position performs unexpectedly, Platinum Investment 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 Platinum Investment will offset losses from the drop in Platinum Investment's long position.| AIR LIQUIDE vs. MAVEN WIRELESS SWEDEN | AIR LIQUIDE vs. ALBIS LEASING AG | AIR LIQUIDE vs. OFFICE DEPOT | AIR LIQUIDE vs. UNITED RENTALS |
| Platinum Investment vs. GUILD ESPORTS PLC | Platinum Investment vs. Xinhua Winshare Publishing | Platinum Investment vs. ARISTOCRAT LEISURE | Platinum Investment vs. Laureate Education |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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