Correlation Between Liontrust Asset and Air Products
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset 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 Liontrust Asset and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and Air Products Chemicals, you can compare the effects of market volatilities on Liontrust Asset 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 Liontrust Asset with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Air Products.
Diversification Opportunities for Liontrust Asset and Air Products
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liontrust and Air is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and Liontrust Asset 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 Liontrust Asset Management 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 Chemicals has no effect on the direction of Liontrust Asset i.e., Liontrust Asset and Air Products go up and down completely randomly.
Pair Corralation between Liontrust Asset and Air Products
Assuming the 90 days trading horizon Liontrust Asset Management is expected to under-perform the Air Products. In addition to that, Liontrust Asset is 1.49 times more volatile than Air Products Chemicals. It trades about -0.05 of its total potential returns per unit of risk. Air Products Chemicals is currently generating about 0.12 per unit of volatility. If you would invest 27,681 in Air Products Chemicals on September 12, 2024 and sell it today you would earn a total of 3,537 from holding Air Products Chemicals or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liontrust Asset Management vs. Air Products Chemicals
Performance |
| Timeline |
| Liontrust Asset Mana |
| Air Products Chemicals |
Liontrust Asset and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liontrust Asset and Air Products
The main advantage of trading using opposite Liontrust Asset and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset 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.| Liontrust Asset vs. Tyson Foods Cl | Liontrust Asset vs. Sligro Food Group | Liontrust Asset vs. Premier Foods PLC | Liontrust Asset vs. Hilton Food Group |
| Air Products vs. Oakley Capital Investments | Air Products vs. Aurora Investment Trust | Air Products vs. New Residential Investment | Air Products vs. Liontrust Asset Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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