Correlation Between Energean Oil and Air Products
Can any of the company-specific risk be diversified away by investing in both Energean Oil 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 Energean Oil and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energean Oil Gas and Air Products Chemicals, you can compare the effects of market volatilities on Energean Oil 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 Energean Oil with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energean Oil and Air Products.
Diversification Opportunities for Energean Oil and Air Products
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energean and Air is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Energean Oil Gas 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 Energean Oil 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 Energean Oil Gas 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 Energean Oil i.e., Energean Oil and Air Products go up and down completely randomly.
Pair Corralation between Energean Oil and Air Products
Assuming the 90 days trading horizon Energean Oil Gas is expected to generate 0.94 times more return on investment than Air Products. However, Energean Oil Gas is 1.06 times less risky than Air Products. It trades about 0.26 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 98,550 in Energean Oil Gas on October 20, 2024 and sell it today you would earn a total of 7,250 from holding Energean Oil Gas or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Energean Oil Gas vs. Air Products Chemicals
Performance |
| Timeline |
| Energean Oil Gas |
| Air Products Chemicals |
Energean Oil and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energean Oil and Air Products
The main advantage of trading using opposite Energean Oil and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energean Oil 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.| Energean Oil vs. Zoom Video Communications | Energean Oil vs. Enbridge | Energean Oil vs. Endo International PLC | Energean Oil vs. Somero Enterprise |
| Air Products vs. Molson Coors Beverage | Air Products vs. Taiwan Semiconductor Manufacturing | Air Products vs. Nordic Semiconductor ASA | Air Products vs. Associated British Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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