Correlation Between Air Products and PHLX Swiss
Can any of the company-specific risk be diversified away by investing in both Air Products and PHLX Swiss 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 PHLX Swiss 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 PHLX Swiss Franc, you can compare the effects of market volatilities on Air Products and PHLX Swiss 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 PHLX Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and PHLX Swiss.
Diversification Opportunities for Air Products and PHLX Swiss
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and PHLX is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and PHLX Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLX Swiss Franc 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 PHLX Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLX Swiss Franc has no effect on the direction of Air Products i.e., Air Products and PHLX Swiss go up and down completely randomly.
Pair Corralation between Air Products and PHLX Swiss
Considering the 90-day investment horizon Air Products and is expected to generate 3.79 times more return on investment than PHLX Swiss. However, Air Products is 3.79 times more volatile than PHLX Swiss Franc. It trades about 0.07 of its potential returns per unit of risk. PHLX Swiss Franc is currently generating about -0.01 per unit of risk. If you would invest 25,763 in Air Products and on September 4, 2024 and sell it today you would earn a total of 7,301 from holding Air Products and or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Air Products and vs. PHLX Swiss Franc
Performance |
| Timeline |
Air Products and PHLX Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Air Products and
Pair trading matchups for Air Products
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Pair Trading with Air Products and PHLX Swiss
The main advantage of trading using opposite Air Products and PHLX Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, PHLX Swiss 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 PHLX Swiss will offset losses from the drop in PHLX Swiss' long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| PHLX Swiss vs. Air Products and | PHLX Swiss vs. Stepan Company | PHLX Swiss vs. Mativ Holdings | PHLX Swiss vs. JD Sports Fashion |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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