Correlation Between Linde Plc and Amyris
Can any of the company-specific risk be diversified away by investing in both Linde Plc and Amyris 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 Linde Plc and Amyris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Linde plc Ordinary and Amyris Inc, you can compare the effects of market volatilities on Linde Plc and Amyris 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 Linde Plc with a short position of Amyris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linde Plc and Amyris.
Diversification Opportunities for Linde Plc and Amyris
Good diversification
The 3 months correlation between Linde and Amyris is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Linde plc Ordinary and Amyris Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amyris Inc and Linde Plc 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 Linde plc Ordinary are associated (or correlated) with Amyris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amyris Inc has no effect on the direction of Linde Plc i.e., Linde Plc and Amyris go up and down completely randomly.
Pair Corralation between Linde Plc and Amyris
If you would invest 101.00 in Amyris Inc on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Amyris Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Linde plc Ordinary vs. Amyris Inc
Performance |
| Timeline |
| Linde plc Ordinary |
| Amyris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Linde Plc and Amyris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linde Plc and Amyris
The main advantage of trading using opposite Linde Plc and Amyris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linde Plc position performs unexpectedly, Amyris 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 Amyris will offset losses from the drop in Amyris' long position.| Linde Plc vs. PPG Industries | Linde Plc vs. Ecolab Inc | Linde Plc vs. Sherwin Williams Co | Linde Plc vs. LyondellBasell Industries NV |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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