Correlation Between AIR PRODCHEMICALS and Lion One
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS and Lion One 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 Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and Lion One Metals, you can compare the effects of market volatilities on AIR PRODCHEMICALS and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and Lion One.
Diversification Opportunities for AIR PRODCHEMICALS and Lion One
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIR and Lion is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and Lion One go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and Lion One
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to generate 0.27 times more return on investment than Lion One. However, AIR PRODCHEMICALS is 3.68 times less risky than Lion One. It trades about 0.44 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.1 per unit of risk. If you would invest 28,640 in AIR PRODCHEMICALS on September 2, 2024 and sell it today you would earn a total of 2,990 from holding AIR PRODCHEMICALS or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIR PRODCHEMICALS vs. Lion One Metals
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| Lion One Metals |
AIR PRODCHEMICALS and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and Lion One
The main advantage of trading using opposite AIR PRODCHEMICALS and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| AIR PRODCHEMICALS vs. SIVERS SEMICONDUCTORS AB | AIR PRODCHEMICALS vs. Darden Restaurants | AIR PRODCHEMICALS vs. Reliance Steel Aluminum | AIR PRODCHEMICALS vs. Q2M Managementberatung AG |
| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |