Correlation Between AIR LIQUIDE and ZIJIN MINH
Can any of the company-specific risk be diversified away by investing in both AIR LIQUIDE and ZIJIN MINH 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 LIQUIDE and ZIJIN MINH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR LIQUIDE ADR and ZIJIN MINH UNSPADR20, you can compare the effects of market volatilities on AIR LIQUIDE and ZIJIN MINH 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 LIQUIDE with a short position of ZIJIN MINH. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR LIQUIDE and ZIJIN MINH.
Diversification Opportunities for AIR LIQUIDE and ZIJIN MINH
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AIR and ZIJIN is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AIR LIQUIDE ADR and ZIJIN MINH UNSPADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIJIN MINH UNSPADR20 and AIR LIQUIDE 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 LIQUIDE ADR are associated (or correlated) with ZIJIN MINH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIJIN MINH UNSPADR20 has no effect on the direction of AIR LIQUIDE i.e., AIR LIQUIDE and ZIJIN MINH go up and down completely randomly.
Pair Corralation between AIR LIQUIDE and ZIJIN MINH
Assuming the 90 days trading horizon AIR LIQUIDE ADR is expected to generate 1.71 times more return on investment than ZIJIN MINH. However, AIR LIQUIDE is 1.71 times more volatile than ZIJIN MINH UNSPADR20. It trades about 0.0 of its potential returns per unit of risk. ZIJIN MINH UNSPADR20 is currently generating about -0.17 per unit of risk. If you would invest 3,273 in AIR LIQUIDE ADR on April 2, 2024 and sell it today you would lose (53.00) from holding AIR LIQUIDE ADR or give up 1.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
AIR LIQUIDE ADR vs. ZIJIN MINH UNSPADR20
Performance |
Timeline |
AIR LIQUIDE ADR |
ZIJIN MINH UNSPADR20 |
AIR LIQUIDE and ZIJIN MINH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AIR LIQUIDE and ZIJIN MINH
The main advantage of trading using opposite AIR LIQUIDE and ZIJIN MINH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR LIQUIDE position performs unexpectedly, ZIJIN MINH 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 ZIJIN MINH will offset losses from the drop in ZIJIN MINH's long position.AIR LIQUIDE vs. Shin Etsu Chemical Co | AIR LIQUIDE vs. CDL INVESTMENT | AIR LIQUIDE vs. SIVERS SEMICONDUCTORS AB | AIR LIQUIDE vs. NorAm Drilling AS |
ZIJIN MINH vs. CDL INVESTMENT | ZIJIN MINH vs. SIVERS SEMICONDUCTORS AB | ZIJIN MINH vs. REYNA SILVER P | ZIJIN MINH vs. Darden Restaurants |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |