Correlation Between Fomento Economico and Airgas
Can any of the company-specific risk be diversified away by investing in both Fomento Economico and Airgas 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 Fomento Economico and Airgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fomento Economico Mexicano and Airgas Inc, you can compare the effects of market volatilities on Fomento Economico and Airgas 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 Fomento Economico with a short position of Airgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Economico and Airgas.
Diversification Opportunities for Fomento Economico and Airgas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fomento and Airgas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano and Airgas Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgas Inc and Fomento Economico 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 Fomento Economico Mexicano are associated (or correlated) with Airgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgas Inc has no effect on the direction of Fomento Economico i.e., Fomento Economico and Airgas go up and down completely randomly.
Pair Corralation between Fomento Economico and Airgas
If you would invest 7,307 in Fomento Economico Mexicano on September 5, 2024 and sell it today you would earn a total of 1,616 from holding Fomento Economico Mexicano or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fomento Economico Mexicano vs. Airgas Inc
Performance |
| Timeline |
| Fomento Economico |
| Airgas Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fomento Economico and Airgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Economico and Airgas
The main advantage of trading using opposite Fomento Economico and Airgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico position performs unexpectedly, Airgas 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 Airgas will offset losses from the drop in Airgas' long position.| Fomento Economico vs. Ambev SA ADR | Fomento Economico vs. Boston Beer | Fomento Economico vs. Carlsberg AS | Fomento Economico vs. Molson Coors Brewing |
| Airgas vs. The Coca Cola | Airgas vs. PepsiCo | Airgas vs. Fomento Economico Mexicano | Airgas vs. Oatly Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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