Correlation Between Airgas and Air Products
Can any of the company-specific risk be diversified away by investing in both Airgas 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 Airgas and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgas Inc and Air Products and, you can compare the effects of market volatilities on Airgas 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 Airgas with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgas and Air Products.
Diversification Opportunities for Airgas and Air Products
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airgas and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Airgas 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 Airgas 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 Airgas 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 Airgas i.e., Airgas and Air Products go up and down completely randomly.
Pair Corralation between Airgas and Air Products
If you would invest 22,410 in Air Products and on January 26, 2024 and sell it today you would earn a total of 1,058 from holding Air Products and or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Airgas Inc vs. Air Products and
Performance |
| Timeline |
| Airgas Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Air Products |
Airgas and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airgas and Air Products
The main advantage of trading using opposite Airgas and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgas 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.| Airgas vs. Emerson Radio | Airgas vs. Precision Drilling | Airgas vs. Arrow Electronics | Airgas vs. KVH Industries |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets |