Correlation Between Aptamer Group and Air Products
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and Air Products 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 Aptamer Group and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptamer Group PLC and Air Products Chemicals, you can compare the effects of market volatilities on Aptamer Group and Air Products 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 Aptamer Group with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Air Products.
Diversification Opportunities for Aptamer Group and Air Products
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptamer and Air is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and Aptamer Group 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 Aptamer Group PLC are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of Aptamer Group i.e., Aptamer Group and Air Products go up and down completely randomly.
Pair Corralation between Aptamer Group and Air Products
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 2.89 times more return on investment than Air Products. However, Aptamer Group is 2.89 times more volatile than Air Products Chemicals. It trades about 0.2 of its potential returns per unit of risk. Air Products Chemicals is currently generating about 0.24 per unit of risk. If you would invest 36.00 in Aptamer Group PLC on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Aptamer Group PLC or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Aptamer Group PLC vs. Air Products Chemicals
Performance |
| Timeline |
| Aptamer Group PLC |
| Air Products Chemicals |
Aptamer Group and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and Air Products
The main advantage of trading using opposite Aptamer Group and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Toyota Motor Corp | Aptamer Group vs. Reliance Industries Ltd |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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