Correlation Between Air Products and Transgene
Can any of the company-specific risk be diversified away by investing in both Air Products and Transgene 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 Transgene 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 Transgene SA, you can compare the effects of market volatilities on Air Products and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Transgene.
Diversification Opportunities for Air Products and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Air Products i.e., Air Products and Transgene go up and down completely randomly.
Pair Corralation between Air Products and Transgene
Considering the 90-day investment horizon Air Products and is expected to generate 0.79 times more return on investment than Transgene. However, Air Products and is 1.27 times less risky than Transgene. It trades about 0.13 of its potential returns per unit of risk. Transgene SA is currently generating about 0.01 per unit of risk. If you would invest 20,979 in Air Products and on November 3, 2024 and sell it today you would earn a total of 12,547 from holding Air Products and or generate 59.81% 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. Transgene SA
Performance |
| Timeline |
| Air Products |
| Transgene SA |
Air Products and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Transgene
The main advantage of trading using opposite Air Products and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| Transgene vs. The Hanover Insurance | Transgene vs. Commonwealth Bank of | Transgene vs. Nasdaq Inc | Transgene vs. Artisan Partners Asset |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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