Correlation Between Umpqua Holdings and Air Products
Can any of the company-specific risk be diversified away by investing in both Umpqua Holdings 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 Umpqua Holdings and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Umpqua Holdings and Air Products and, you can compare the effects of market volatilities on Umpqua Holdings 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 Umpqua Holdings with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Umpqua Holdings and Air Products.
Diversification Opportunities for Umpqua Holdings and Air Products
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Umpqua and Air is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Umpqua Holdings and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and Umpqua Holdings 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 Umpqua Holdings 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 Umpqua Holdings i.e., Umpqua Holdings and Air Products go up and down completely randomly.
Pair Corralation between Umpqua Holdings and Air Products
Given the investment horizon of 90 days Umpqua Holdings is expected to generate 0.94 times more return on investment than Air Products. However, Umpqua Holdings is 1.06 times less risky than Air Products. It trades about 0.04 of its potential returns per unit of risk. Air Products and is currently generating about 0.01 per unit of risk. If you would invest 1,729 in Umpqua Holdings on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Umpqua Holdings or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.31% |
| Values | Daily Returns |
Umpqua Holdings vs. Air Products and
Performance |
| Timeline |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Air Products |
Umpqua Holdings and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Umpqua Holdings and Air Products
The main advantage of trading using opposite Umpqua Holdings and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Umpqua Holdings 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.| Umpqua Holdings vs. Cadence Design Systems | Umpqua Holdings vs. Sapiens International | Umpqua Holdings vs. Uber Technologies | Umpqua Holdings vs. Herc Holdings |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |