Correlation Between Air Products and HERSHEY
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By analyzing existing cross correlation between Air Products and and HERSHEY 72 percent, you can compare the effects of market volatilities on Air Products and HERSHEY 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 HERSHEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and HERSHEY.
Diversification Opportunities for Air Products and HERSHEY
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and HERSHEY is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and HERSHEY 72 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HERSHEY 72 percent 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 HERSHEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HERSHEY 72 percent has no effect on the direction of Air Products i.e., Air Products and HERSHEY go up and down completely randomly.
Pair Corralation between Air Products and HERSHEY
Considering the 90-day investment horizon Air Products and is expected to generate 1.65 times more return on investment than HERSHEY. However, Air Products is 1.65 times more volatile than HERSHEY 72 percent. It trades about 0.02 of its potential returns per unit of risk. HERSHEY 72 percent is currently generating about 0.0 per unit of risk. If you would invest 30,923 in Air Products and on September 4, 2024 and sell it today you would earn a total of 2,639 from holding Air Products and or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.37% |
| Values | Daily Returns |
Air Products and vs. HERSHEY 72 percent
Performance |
| Timeline |
| Air Products |
| HERSHEY 72 percent |
Air Products and HERSHEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and HERSHEY
The main advantage of trading using opposite Air Products and HERSHEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, HERSHEY 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 HERSHEY will offset losses from the drop in HERSHEY'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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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