Correlation Between Lhyfe SA and Air Products
Can any of the company-specific risk be diversified away by investing in both Lhyfe SA 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 Lhyfe SA and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lhyfe SA and Air Products and, you can compare the effects of market volatilities on Lhyfe SA 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 Lhyfe SA with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lhyfe SA and Air Products.
Diversification Opportunities for Lhyfe SA and Air Products
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lhyfe and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lhyfe SA and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and Lhyfe SA 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 Lhyfe SA 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 has no effect on the direction of Lhyfe SA i.e., Lhyfe SA and Air Products go up and down completely randomly.
Pair Corralation between Lhyfe SA and Air Products
Assuming the 90 days horizon Lhyfe SA is expected to under-perform the Air Products. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lhyfe SA is 1.0 times less risky than Air Products. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Air Products and is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 30,935 in Air Products and on September 3, 2024 and sell it today you would earn a total of 2,498 from holding Air Products and or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.24% |
| Values | Daily Returns |
Lhyfe SA vs. Air Products and
Performance |
| Timeline |
| Lhyfe SA |
| Air Products |
Lhyfe SA and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lhyfe SA and Air Products
The main advantage of trading using opposite Lhyfe SA and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lhyfe SA 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.| Lhyfe SA vs. Procter Gamble | Lhyfe SA vs. Analog Devices | Lhyfe SA vs. Origin Materials | Lhyfe SA vs. Allient |
| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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