Correlation Between Air Products and ROBERTET
Can any of the company-specific risk be diversified away by investing in both Air Products and ROBERTET 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 Products and ROBERTET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Products and and ROBERTET SA INH, you can compare the effects of market volatilities on Air Products and ROBERTET 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 Products with a short position of ROBERTET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and ROBERTET.
Diversification Opportunities for Air Products and ROBERTET
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and ROBERTET is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and ROBERTET SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROBERTET SA INH and Air Products 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 Products and are associated (or correlated) with ROBERTET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROBERTET SA INH has no effect on the direction of Air Products i.e., Air Products and ROBERTET go up and down completely randomly.
Pair Corralation between Air Products and ROBERTET
Assuming the 90 days horizon Air Products and is expected to under-perform the ROBERTET. In addition to that, Air Products is 1.31 times more volatile than ROBERTET SA INH. It trades about -0.36 of its total potential returns per unit of risk. ROBERTET SA INH is currently generating about -0.2 per unit of volatility. If you would invest 87,500 in ROBERTET SA INH on September 30, 2024 and sell it today you would lose (3,900) from holding ROBERTET SA INH or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Products and vs. ROBERTET SA INH
Performance |
| Timeline |
| Air Products |
| ROBERTET SA INH |
Air Products and ROBERTET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and ROBERTET
The main advantage of trading using opposite Air Products and ROBERTET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, ROBERTET 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 ROBERTET will offset losses from the drop in ROBERTET's long position.| Air Products vs. PICKN PAY STORES | Air Products vs. QBE Insurance Group | Air Products vs. SPARTAN STORES | Air Products vs. ZURICH INSURANCE GROUP |
| ROBERTET vs. CDN IMPERIAL BANK | ROBERTET vs. Commonwealth Bank of | ROBERTET vs. Tradegate AG Wertpapierhandelsbank | ROBERTET vs. Ribbon Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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