Correlation Between Air Products and Symrise AG
Can any of the company-specific risk be diversified away by investing in both Air Products and Symrise AG 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 Air Products and Symrise AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Products and and Symrise AG, you can compare the effects of market volatilities on Air Products and Symrise AG 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 Air Products with a short position of Symrise AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Symrise AG.
Diversification Opportunities for Air Products and Symrise AG
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Air and Symrise is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and Symrise AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symrise AG and Air Products 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 Air Products and are associated (or correlated) with Symrise AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symrise AG has no effect on the direction of Air Products i.e., Air Products and Symrise AG go up and down completely randomly.
Pair Corralation between Air Products and Symrise AG
Considering the 90-day investment horizon Air Products and is expected to under-perform the Symrise AG. But the stock apears to be less risky and, when comparing its historical volatility, Air Products and is 1.62 times less risky than Symrise AG. The stock trades about -0.05 of its potential returns per unit of risk. The Symrise AG is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,065 in Symrise AG on December 2, 2024 and sell it today you would lose (648.00) from holding Symrise AG or give up 5.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Air Products and vs. Symrise AG
Performance |
Timeline |
Air Products |
Symrise AG |
Air Products and Symrise AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Products and Symrise AG
The main advantage of trading using opposite Air Products and Symrise AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, Symrise AG 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 Symrise AG will offset losses from the drop in Symrise AG's long position.Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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