Correlation Between Air Products and ACG Metals
Can any of the company-specific risk be diversified away by investing in both Air Products and ACG Metals 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 ACG Metals 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 ACG Metals Limited, you can compare the effects of market volatilities on Air Products and ACG Metals 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 ACG Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and ACG Metals.
Diversification Opportunities for Air Products and ACG Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and ACG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited 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 ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of Air Products i.e., Air Products and ACG Metals go up and down completely randomly.
Pair Corralation between Air Products and ACG Metals
If you would invest 31,826 in Air Products and on August 29, 2024 and sell it today you would earn a total of 1,652 from holding Air Products and or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Air Products and vs. ACG Metals Limited
Performance |
| Timeline |
| Air Products |
| ACG Metals Limited |
Air Products and ACG Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and ACG Metals
The main advantage of trading using opposite Air Products and ACG Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, ACG Metals 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 ACG Metals will offset losses from the drop in ACG Metals' long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| ACG Metals vs. GoHealth | ACG Metals vs. Employers Holdings | ACG Metals vs. Ihuman Inc | ACG Metals vs. Hafnia Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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