Correlation Between AIR PRODCHEMICALS and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS and Pembina Pipeline 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 Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and Pembina Pipeline Corp, you can compare the effects of market volatilities on AIR PRODCHEMICALS and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and Pembina Pipeline.
Diversification Opportunities for AIR PRODCHEMICALS and Pembina Pipeline
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIR and Pembina is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and Pembina Pipeline go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and Pembina Pipeline
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to generate 1.24 times more return on investment than Pembina Pipeline. However, AIR PRODCHEMICALS is 1.24 times more volatile than Pembina Pipeline Corp. It trades about 0.55 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.12 per unit of risk. If you would invest 27,730 in AIR PRODCHEMICALS on November 3, 2024 and sell it today you would earn a total of 4,660 from holding AIR PRODCHEMICALS or generate 16.8% 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. Pembina Pipeline Corp
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| Pembina Pipeline Corp |
AIR PRODCHEMICALS and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and Pembina Pipeline
The main advantage of trading using opposite AIR PRODCHEMICALS and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| AIR PRODCHEMICALS vs. BRAEMAR HOTELS RES | AIR PRODCHEMICALS vs. DALATA HOTEL | AIR PRODCHEMICALS vs. COVIVIO HOTELS INH | AIR PRODCHEMICALS vs. Pebblebrook Hotel Trust |
| Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Cheniere Energy | Pembina Pipeline vs. Kinder Morgan |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |