Correlation Between 437076BM3 and Air Products
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By analyzing existing cross correlation between HOME DEPOT INC and Air Products and, you can compare the effects of market volatilities on 437076BM3 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 437076BM3 with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of 437076BM3 and Air Products.
Diversification Opportunities for 437076BM3 and Air Products
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 437076BM3 and Air is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HOME DEPOT INC and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and 437076BM3 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 HOME DEPOT INC 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 437076BM3 i.e., 437076BM3 and Air Products go up and down completely randomly.
Pair Corralation between 437076BM3 and Air Products
Assuming the 90 days trading horizon HOME DEPOT INC is expected to under-perform the Air Products. But the bond apears to be less risky and, when comparing its historical volatility, HOME DEPOT INC is 1.05 times less risky than Air Products. The bond trades about -0.09 of its potential returns per unit of risk. The Air Products and is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 31,277 in Air Products and on August 31, 2024 and sell it today you would earn a total of 2,045 from holding Air Products and or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOME DEPOT INC vs. Air Products and
Performance |
| Timeline |
| HOME DEPOT INC |
| Air Products |
437076BM3 and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 437076BM3 and Air Products
The main advantage of trading using opposite 437076BM3 and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 437076BM3 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.| 437076BM3 vs. Air Products and | 437076BM3 vs. Chimerix | 437076BM3 vs. Genfit | 437076BM3 vs. CF Industries Holdings |
| Air Products vs. Eastman Chemical | Air Products vs. Linde plc Ordinary | Air Products vs. Ecolab Inc | Air Products vs. Sherwin Williams Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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