Correlation Between Air Products and Southern Trust
Can any of the company-specific risk be diversified away by investing in both Air Products and Southern Trust 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 Southern Trust 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 Southern Trust Securities, you can compare the effects of market volatilities on Air Products and Southern Trust 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 Southern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Southern Trust.
Diversification Opportunities for Air Products and Southern Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and Southern Trust Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Trust Securities 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 Southern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Trust Securities has no effect on the direction of Air Products i.e., Air Products and Southern Trust go up and down completely randomly.
Pair Corralation between Air Products and Southern Trust
If you would invest 31,826 in Air Products and on August 29, 2024 and sell it today you would earn a total of 1,496 from holding Air Products and or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Products and vs. Southern Trust Securities
Performance |
| Timeline |
| Air Products |
| Southern Trust Securities |
Air Products and Southern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Southern Trust
The main advantage of trading using opposite Air Products and Southern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Southern Trust 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 Southern Trust will offset losses from the drop in Southern Trust's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| Southern Trust vs. Dennys Corp | Southern Trust vs. CAVA Group, | Southern Trust vs. Peoples Educational Holdings | Southern Trust vs. Cannae Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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