Correlation Between Linde Plc and AGC
Can any of the company-specific risk be diversified away by investing in both Linde Plc and AGC 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 AGC 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 AGC Inc, you can compare the effects of market volatilities on Linde Plc and AGC 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 AGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linde Plc and AGC.
Diversification Opportunities for Linde Plc and AGC
Very good diversification
The 3 months correlation between Linde and AGC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Linde plc Ordinary and AGC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGC 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 AGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGC Inc has no effect on the direction of Linde Plc i.e., Linde Plc and AGC go up and down completely randomly.
Pair Corralation between Linde Plc and AGC
If you would invest 40,454 in Linde plc Ordinary on September 4, 2024 and sell it today you would earn a total of 5,515 from holding Linde plc Ordinary or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Linde plc Ordinary vs. AGC Inc
Performance |
| Timeline |
| Linde plc Ordinary |
| AGC Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Linde Plc and AGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linde Plc and AGC
The main advantage of trading using opposite Linde Plc and AGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linde Plc position performs unexpectedly, AGC 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 AGC will offset losses from the drop in AGC's 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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