Correlation Between 191216DK3 and Air Products
Specify exactly 2 symbols:
By analyzing existing cross correlation between COCA COLA CO and Air Products and, you can compare the effects of market volatilities on 191216DK3 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 191216DK3 with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of 191216DK3 and Air Products.
Diversification Opportunities for 191216DK3 and Air Products
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 191216DK3 and Air is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding COCA COLA CO and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and 191216DK3 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 COCA COLA CO 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 191216DK3 i.e., 191216DK3 and Air Products go up and down completely randomly.
Pair Corralation between 191216DK3 and Air Products
Assuming the 90 days trading horizon COCA COLA CO is expected to under-perform the Air Products. But the bond apears to be less risky and, when comparing its historical volatility, COCA COLA CO is 2.7 times less risky than Air Products. The bond trades about -0.16 of its potential returns per unit of risk. The Air Products and is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 29,396 in Air Products and on September 25, 2024 and sell it today you would earn a total of 206.00 from holding Air Products and or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 92.19% |
Values | Daily Returns |
COCA COLA CO vs. Air Products and
Performance |
Timeline |
COCA A CO |
Air Products |
191216DK3 and Air Products Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 191216DK3 and Air Products
The main advantage of trading using opposite 191216DK3 and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 191216DK3 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.191216DK3 vs. Air Products and | 191216DK3 vs. Freedom Bank of | 191216DK3 vs. NL Industries | 191216DK3 vs. Chiba Bank Ltd |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |