Correlation Between Geratherm Medical and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both Geratherm Medical 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 Geratherm Medical and AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geratherm Medical AG and AIR PRODCHEMICALS, you can compare the effects of market volatilities on Geratherm Medical 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 Geratherm Medical with a short position of AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geratherm Medical and AIR PRODCHEMICALS.
Diversification Opportunities for Geratherm Medical and AIR PRODCHEMICALS
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geratherm and AIR is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Geratherm Medical AG and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS and Geratherm Medical 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 Geratherm Medical AG 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 Geratherm Medical i.e., Geratherm Medical and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between Geratherm Medical and AIR PRODCHEMICALS
Assuming the 90 days trading horizon Geratherm Medical AG is expected to under-perform the AIR PRODCHEMICALS. In addition to that, Geratherm Medical is 2.28 times more volatile than AIR PRODCHEMICALS. It trades about -0.31 of its total potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.06 per unit of volatility. If you would invest 30,550 in AIR PRODCHEMICALS on August 24, 2024 and sell it today you would earn a total of 480.00 from holding AIR PRODCHEMICALS or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geratherm Medical AG vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| Geratherm Medical |
| AIR PRODCHEMICALS |
Geratherm Medical and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geratherm Medical and AIR PRODCHEMICALS
The main advantage of trading using opposite Geratherm Medical and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geratherm Medical 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.| Geratherm Medical vs. Align Technology | Geratherm Medical vs. Superior Plus Corp | Geratherm Medical vs. NMI Holdings | Geratherm Medical vs. Origin Agritech |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |