Correlation Between STGEORGE MINING and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and AIR PRODCHEMICALS, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and AIR PRODCHEMICALS.
Diversification Opportunities for STGEORGE MINING and AIR PRODCHEMICALS
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STGEORGE and AIR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS and STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between STGEORGE MINING and AIR PRODCHEMICALS
Assuming the 90 days horizon STGEORGE MINING is expected to generate 1.63 times less return on investment than AIR PRODCHEMICALS. In addition to that, STGEORGE MINING is 6.09 times more volatile than AIR PRODCHEMICALS. It trades about 0.06 of its total potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.62 per unit of volatility. If you would invest 27,590 in AIR PRODCHEMICALS on November 5, 2024 and sell it today you would earn a total of 4,800 from holding AIR PRODCHEMICALS or generate 17.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| STGEORGE MINING LTD |
| AIR PRODCHEMICALS |
STGEORGE MINING and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and AIR PRODCHEMICALS
The main advantage of trading using opposite STGEORGE MINING and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. Tyson Foods | STGEORGE MINING vs. MONEYSUPERMARKET | STGEORGE MINING vs. PATTIES FOODS | STGEORGE MINING vs. ATRESMEDIA |
| AIR PRODCHEMICALS vs. Air Lease | AIR PRODCHEMICALS vs. INTERNET INJPADR 1 | AIR PRODCHEMICALS vs. Verizon Communications | AIR PRODCHEMICALS vs. Zoom Video Communications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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