Correlation Between Brockhaus Capital and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and AIR LIQUIDE 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 Brockhaus Capital and AIR LIQUIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and AIR LIQUIDE ADR, you can compare the effects of market volatilities on Brockhaus Capital and AIR LIQUIDE 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 Brockhaus Capital with a short position of AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and AIR LIQUIDE.
Diversification Opportunities for Brockhaus Capital and AIR LIQUIDE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brockhaus and AIR is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and AIR LIQUIDE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR LIQUIDE ADR and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with AIR LIQUIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR LIQUIDE ADR has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between Brockhaus Capital and AIR LIQUIDE
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the AIR LIQUIDE. In addition to that, Brockhaus Capital is 2.82 times more volatile than AIR LIQUIDE ADR. It trades about -0.09 of its total potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about -0.03 per unit of volatility. If you would invest 3,100 in AIR LIQUIDE ADR on September 22, 2024 and sell it today you would lose (20.00) from holding AIR LIQUIDE ADR or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| Brockhaus Capital |
| AIR LIQUIDE ADR |
Brockhaus Capital and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and AIR LIQUIDE
The main advantage of trading using opposite Brockhaus Capital and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, AIR LIQUIDE 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 LIQUIDE will offset losses from the drop in AIR LIQUIDE's long position.| Brockhaus Capital vs. UET United Electronic | Brockhaus Capital vs. Taiwan Semiconductor Manufacturing | Brockhaus Capital vs. Arrow Electronics | Brockhaus Capital vs. Meiko Electronics Co |
| AIR LIQUIDE vs. Cleanaway Waste Management | AIR LIQUIDE vs. GREENX METALS LTD | AIR LIQUIDE vs. AGF Management Limited | AIR LIQUIDE vs. Brockhaus Capital Management |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |