Correlation Between Sporttotal and Air Products
Can any of the company-specific risk be diversified away by investing in both Sporttotal 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 Sporttotal and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sporttotal AG and Air Products and, you can compare the effects of market volatilities on Sporttotal 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 Sporttotal with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sporttotal and Air Products.
Diversification Opportunities for Sporttotal and Air Products
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sporttotal and Air is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sporttotal AG and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and Sporttotal 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 Sporttotal AG 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 Sporttotal i.e., Sporttotal and Air Products go up and down completely randomly.
Pair Corralation between Sporttotal and Air Products
Assuming the 90 days trading horizon Sporttotal AG is expected to under-perform the Air Products. In addition to that, Sporttotal is 2.57 times more volatile than Air Products and. It trades about 0.0 of its total potential returns per unit of risk. Air Products and is currently generating about 0.02 per unit of volatility. If you would invest 28,840 in Air Products and on September 4, 2024 and sell it today you would earn a total of 2,650 from holding Air Products and or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sporttotal AG vs. Air Products and
Performance |
| Timeline |
| Sporttotal AG |
| Air Products |
Sporttotal and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sporttotal and Air Products
The main advantage of trading using opposite Sporttotal and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sporttotal 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.| Sporttotal vs. SCANSOURCE | Sporttotal vs. GigaMedia | Sporttotal vs. REMEDY ENTERTAINMENT OYJ | Sporttotal vs. Harmony Gold Mining |
| Air Products vs. Westlake Chemical | Air Products vs. United Airlines Holdings | Air Products vs. AEGEAN AIRLINES | Air Products vs. Soken Chemical Engineering |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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