Correlation Between Air Products and BOEING
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By analyzing existing cross correlation between Air Products and and BOEING CO, you can compare the effects of market volatilities on Air Products and BOEING 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 BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and BOEING.
Diversification Opportunities for Air Products and BOEING
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and BOEING is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO 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 BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of Air Products i.e., Air Products and BOEING go up and down completely randomly.
Pair Corralation between Air Products and BOEING
Considering the 90-day investment horizon Air Products and is expected to generate 2.27 times more return on investment than BOEING. However, Air Products is 2.27 times more volatile than BOEING CO. It trades about 0.49 of its potential returns per unit of risk. BOEING CO is currently generating about -0.03 per unit of risk. If you would invest 30,609 in Air Products and on September 3, 2024 and sell it today you would earn a total of 2,824 from holding Air Products and or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Air Products and vs. BOEING CO
Performance |
| Timeline |
| Air Products |
| BOEING CO |
Air Products and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and BOEING
The main advantage of trading using opposite Air Products and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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