Correlation Between Securitas and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both Securitas 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 Securitas and AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Securitas AB and AIR PRODCHEMICALS, you can compare the effects of market volatilities on Securitas 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 Securitas with a short position of AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Securitas and AIR PRODCHEMICALS.
Diversification Opportunities for Securitas and AIR PRODCHEMICALS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Securitas and AIR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Securitas AB and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS and Securitas 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 Securitas AB 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 Securitas i.e., Securitas and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between Securitas and AIR PRODCHEMICALS
Assuming the 90 days trading horizon Securitas AB is expected to generate 1.71 times more return on investment than AIR PRODCHEMICALS. However, Securitas is 1.71 times more volatile than AIR PRODCHEMICALS. It trades about 0.11 of its potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.04 per unit of risk. If you would invest 333.00 in Securitas AB on October 30, 2024 and sell it today you would earn a total of 876.00 from holding Securitas AB or generate 263.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Securitas AB vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| Securitas AB |
| AIR PRODCHEMICALS |
Securitas and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Securitas and AIR PRODCHEMICALS
The main advantage of trading using opposite Securitas and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Securitas 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.| Securitas vs. CompuGroup Medical SE | Securitas vs. Diamyd Medical AB | Securitas vs. Air Lease | Securitas vs. IMAGIN MEDICAL INC |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |