Correlation Between Cboe UK and Air Products
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cboe UK Consumer and Air Products Chemicals, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Air Products.
Diversification Opportunities for Cboe UK and Air Products
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Air is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Air Products go up and down completely randomly.
Pair Corralation between Cboe UK and Air Products
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.9 times more return on investment than Air Products. However, Cboe UK Consumer is 1.11 times less risky than Air Products. It trades about 0.41 of its potential returns per unit of risk. Air Products Chemicals is currently generating about 0.23 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 284,603 from holding Cboe UK Consumer or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Air Products Chemicals
Performance |
| Timeline |
Cboe UK and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Air Products Chemicals
Pair trading matchups for Air Products
Pair Trading with Cboe UK and Air Products
The main advantage of trading using opposite Cboe UK and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| Air Products vs. Impax Environmental Markets | Air Products vs. JD Sports Fashion | Air Products vs. Seche Environnement SA | Air Products vs. Lowland Investment Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world |