Correlation Between Air Products and Consilium Acquisition
Can any of the company-specific risk be diversified away by investing in both Air Products and Consilium Acquisition 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 Consilium Acquisition 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 Consilium Acquisition I, you can compare the effects of market volatilities on Air Products and Consilium Acquisition 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 Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Consilium Acquisition.
Diversification Opportunities for Air Products and Consilium Acquisition
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Consilium is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and Consilium Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consilium Acquisition 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 Consilium Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consilium Acquisition has no effect on the direction of Air Products i.e., Air Products and Consilium Acquisition go up and down completely randomly.
Pair Corralation between Air Products and Consilium Acquisition
Considering the 90-day investment horizon Air Products and is expected to generate 0.21 times more return on investment than Consilium Acquisition. However, Air Products and is 4.77 times less risky than Consilium Acquisition. It trades about 0.68 of its potential returns per unit of risk. Consilium Acquisition I is currently generating about -0.02 per unit of risk. If you would invest 28,391 in Air Products and on November 4, 2024 and sell it today you would earn a total of 5,135 from holding Air Products and or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Air Products and vs. Consilium Acquisition I
Performance |
| Timeline |
| Air Products |
| Consilium Acquisition |
Air Products and Consilium Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Consilium Acquisition
The main advantage of trading using opposite Air Products and Consilium Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Consilium Acquisition 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 Consilium Acquisition will offset losses from the drop in Consilium Acquisition's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| Consilium Acquisition vs. BBB Foods | Consilium Acquisition vs. Philip Morris International | Consilium Acquisition vs. BRC Inc | Consilium Acquisition vs. FitLife Brands, Common |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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