Correlation Between Air Products and POLA Orbis
Can any of the company-specific risk be diversified away by investing in both Air Products and POLA Orbis 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 POLA Orbis 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 POLA Orbis Holdings, you can compare the effects of market volatilities on Air Products and POLA Orbis 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 POLA Orbis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and POLA Orbis.
Diversification Opportunities for Air Products and POLA Orbis
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and POLA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and POLA Orbis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POLA Orbis Holdings 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 POLA Orbis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POLA Orbis Holdings has no effect on the direction of Air Products i.e., Air Products and POLA Orbis go up and down completely randomly.
Pair Corralation between Air Products and POLA Orbis
If you would invest 29,138 in Air Products and on October 20, 2024 and sell it today you would earn a total of 2,642 from holding Air Products and or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Air Products and vs. POLA Orbis Holdings
Performance |
| Timeline |
| Air Products |
| POLA Orbis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Products and POLA Orbis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and POLA Orbis
The main advantage of trading using opposite Air Products and POLA Orbis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, POLA Orbis 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 POLA Orbis will offset losses from the drop in POLA Orbis' long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| POLA Orbis vs. Wheels Up Experience | POLA Orbis vs. Merit Medical Systems | POLA Orbis vs. Todos Medical | POLA Orbis vs. Sinclair Broadcast Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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