Correlation Between Air Products and 552953CD1
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By analyzing existing cross correlation between Air Products and and MGM Resorts International, you can compare the effects of market volatilities on Air Products and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and 552953CD1.
Diversification Opportunities for Air Products and 552953CD1
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and 552953CD1 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Air Products i.e., Air Products and 552953CD1 go up and down completely randomly.
Pair Corralation between Air Products and 552953CD1
Considering the 90-day investment horizon Air Products and is expected to generate 3.67 times more return on investment than 552953CD1. However, Air Products is 3.67 times more volatile than MGM Resorts International. It trades about 0.08 of its potential returns per unit of risk. MGM Resorts International is currently generating about -0.02 per unit of risk. If you would invest 26,962 in Air Products and on September 14, 2024 and sell it today you would earn a total of 4,127 from holding Air Products and or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Air Products and vs. MGM Resorts International
Performance |
| Timeline |
| Air Products |
| MGM Resorts International |
Air Products and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and 552953CD1
The main advantage of trading using opposite Air Products and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
| 552953CD1 vs. Chemours Co | 552953CD1 vs. Air Products and | 552953CD1 vs. Mativ Holdings | 552953CD1 vs. Luxfer Holdings PLC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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