Correlation Between AIR PRODCHEMICALS and TELES Informationstech
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By analyzing existing cross correlation between AIR PRODCHEMICALS and TELES Informationstechnologien AG, you can compare the effects of market volatilities on AIR PRODCHEMICALS and TELES Informationstech 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 TELES Informationstech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and TELES Informationstech.
Diversification Opportunities for AIR PRODCHEMICALS and TELES Informationstech
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIR and TELES is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and TELES Informationstechnologien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELES Informationstech 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 TELES Informationstech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELES Informationstech has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and TELES Informationstech go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and TELES Informationstech
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to generate 0.36 times more return on investment than TELES Informationstech. However, AIR PRODCHEMICALS is 2.78 times less risky than TELES Informationstech. It trades about -0.1 of its potential returns per unit of risk. TELES Informationstechnologien AG is currently generating about -0.09 per unit of risk. If you would invest 31,230 in AIR PRODCHEMICALS on November 29, 2024 and sell it today you would lose (1,200) from holding AIR PRODCHEMICALS or give up 3.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AIR PRODCHEMICALS vs. TELES Informationstechnologien
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| TELES Informationstech |
AIR PRODCHEMICALS and TELES Informationstech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and TELES Informationstech
The main advantage of trading using opposite AIR PRODCHEMICALS and TELES Informationstech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS position performs unexpectedly, TELES Informationstech 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 TELES Informationstech will offset losses from the drop in TELES Informationstech's long position.| AIR PRODCHEMICALS vs. Retail Estates NV | AIR PRODCHEMICALS vs. FAST RETAIL ADR | AIR PRODCHEMICALS vs. United Overseas Insurance | AIR PRODCHEMICALS vs. CREDIT AGRICOLE |
| TELES Informationstech vs. Sunstone Hotel Investors | TELES Informationstech vs. INTERCONT HOTELS | TELES Informationstech vs. Dalata Hotel Group | TELES Informationstech vs. USWE SPORTS AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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