Correlation Between Air Products and 437076CP5
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By analyzing existing cross correlation between Air Products and and HD 325 15 APR 32, you can compare the effects of market volatilities on Air Products and 437076CP5 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 437076CP5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and 437076CP5.
Diversification Opportunities for Air Products and 437076CP5
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and 437076CP5 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and HD 325 15 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HD 325 15 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 437076CP5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HD 325 15 has no effect on the direction of Air Products i.e., Air Products and 437076CP5 go up and down completely randomly.
Pair Corralation between Air Products and 437076CP5
Considering the 90-day investment horizon Air Products and is expected to generate 1.79 times more return on investment than 437076CP5. However, Air Products is 1.79 times more volatile than HD 325 15 APR 32. It trades about 0.16 of its potential returns per unit of risk. HD 325 15 APR 32 is currently generating about -0.1 per unit of risk. If you would invest 28,693 in Air Products and on November 30, 2024 and sell it today you would earn a total of 2,922 from holding Air Products and or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Air Products and vs. HD 325 15 APR 32
Performance |
| Timeline |
| Air Products |
| HD 325 15 |
Air Products and 437076CP5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and 437076CP5
The main advantage of trading using opposite Air Products and 437076CP5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, 437076CP5 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 437076CP5 will offset losses from the drop in 437076CP5's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| 437076CP5 vs. Quaker Chemical | 437076CP5 vs. American Vanguard | 437076CP5 vs. Skechers USA | 437076CP5 vs. Inter Parfums |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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