Correlation Between AIR PRODCHEMICALS and Kronos Worldwide
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS and Kronos Worldwide 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 PRODCHEMICALS and Kronos Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and Kronos Worldwide, you can compare the effects of market volatilities on AIR PRODCHEMICALS and Kronos Worldwide 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 PRODCHEMICALS with a short position of Kronos Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and Kronos Worldwide.
Diversification Opportunities for AIR PRODCHEMICALS and Kronos Worldwide
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AIR and Kronos is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and Kronos Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Worldwide and AIR PRODCHEMICALS 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 PRODCHEMICALS are associated (or correlated) with Kronos Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kronos Worldwide has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and Kronos Worldwide go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and Kronos Worldwide
If you would invest 24,062 in AIR PRODCHEMICALS on September 14, 2024 and sell it today you would earn a total of 5,688 from holding AIR PRODCHEMICALS or generate 23.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
AIR PRODCHEMICALS vs. Kronos Worldwide
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| Kronos Worldwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AIR PRODCHEMICALS and Kronos Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and Kronos Worldwide
The main advantage of trading using opposite AIR PRODCHEMICALS and Kronos Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS position performs unexpectedly, Kronos Worldwide 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 Kronos Worldwide will offset losses from the drop in Kronos Worldwide's long position.| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
| Kronos Worldwide vs. Gamma Communications plc | Kronos Worldwide vs. Transportadora de Gas | Kronos Worldwide vs. Iridium Communications | Kronos Worldwide vs. HEMISPHERE EGY |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |