Correlation Between Bollor SE and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both Bollor SE and AIR PRODCHEMICALS 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 Bollor SE and AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and AIR PRODCHEMICALS, you can compare the effects of market volatilities on Bollor SE and AIR PRODCHEMICALS 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 Bollor SE with a short position of AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollor SE and AIR PRODCHEMICALS.
Diversification Opportunities for Bollor SE and AIR PRODCHEMICALS
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bollor and AIR is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS and Bollor SE 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 Bollor SE are associated (or correlated) with AIR PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of Bollor SE i.e., Bollor SE and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between Bollor SE and AIR PRODCHEMICALS
Assuming the 90 days horizon Bollor SE is expected to generate 1.06 times less return on investment than AIR PRODCHEMICALS. But when comparing it to its historical volatility, Bollor SE is 1.27 times less risky than AIR PRODCHEMICALS. It trades about 0.03 of its potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 28,250 in AIR PRODCHEMICALS on August 30, 2024 and sell it today you would earn a total of 3,620 from holding AIR PRODCHEMICALS or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bollor SE vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| Bollor SE |
| AIR PRODCHEMICALS |
Bollor SE and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollor SE and AIR PRODCHEMICALS
The main advantage of trading using opposite Bollor SE and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollor SE position performs unexpectedly, AIR PRODCHEMICALS 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 PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS's long position.| Bollor SE vs. ZTO Express | Bollor SE vs. Expeditors International of | Bollor SE vs. Superior Plus Corp | Bollor SE vs. Origin Agritech |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Superior Plus Corp | AIR PRODCHEMICALS vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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