Correlation Between PHLX Swiss and Air Products
Can any of the company-specific risk be diversified away by investing in both PHLX Swiss 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 PHLX Swiss and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHLX Swiss Franc and Air Products and, you can compare the effects of market volatilities on PHLX Swiss 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 PHLX Swiss with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHLX Swiss and Air Products.
Diversification Opportunities for PHLX Swiss and Air Products
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHLX and Air is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding PHLX Swiss Franc and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and PHLX Swiss 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 PHLX Swiss Franc 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 has no effect on the direction of PHLX Swiss i.e., PHLX Swiss and Air Products go up and down completely randomly.
Pair Corralation between PHLX Swiss and Air Products
Assuming the 90 days trading horizon PHLX Swiss Franc is expected to under-perform the Air Products. But the index apears to be less risky and, when comparing its historical volatility, PHLX Swiss Franc is 3.79 times less risky than Air Products. The index trades about -0.01 of its potential returns per unit of risk. The Air Products and is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 25,763 in Air Products and on September 4, 2024 and sell it today you would earn a total of 7,301 from holding Air Products and or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
PHLX Swiss Franc vs. Air Products and
Performance |
| Timeline |
PHLX Swiss and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Air Products and
Pair trading matchups for Air Products
Pair Trading with PHLX Swiss and Air Products
The main advantage of trading using opposite PHLX Swiss and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHLX Swiss 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.| PHLX Swiss vs. Air Products and | PHLX Swiss vs. Stepan Company | PHLX Swiss vs. Mativ Holdings | PHLX Swiss vs. JD Sports Fashion |
| Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |