Correlation Between Air Products and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Air Products and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Air Products and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Mountain Crest.
Diversification Opportunities for Air Products and Mountain Crest
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and Mountain is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Air Products i.e., Air Products and Mountain Crest go up and down completely randomly.
Pair Corralation between Air Products and Mountain Crest
If you would invest 30,609 in Air Products and on September 3, 2024 and sell it today you would earn a total of 2,953 from holding Air Products and or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Air Products and vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Air Products |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Products and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Mountain Crest
The main advantage of trading using opposite Air Products and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| Mountain Crest vs. Yuexiu Transport Infrastructure | Mountain Crest vs. Park Hotels Resorts | Mountain Crest vs. Starbucks | Mountain Crest vs. Meli Hotels International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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