Correlation Between LAir Liquide and ULTRA CLEAN
Can any of the company-specific risk be diversified away by investing in both LAir Liquide and ULTRA CLEAN 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 LAir Liquide and ULTRA CLEAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAir Liquide SA and ULTRA CLEAN HLDGS, you can compare the effects of market volatilities on LAir Liquide and ULTRA CLEAN 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 LAir Liquide with a short position of ULTRA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAir Liquide and ULTRA CLEAN.
Diversification Opportunities for LAir Liquide and ULTRA CLEAN
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LAir and ULTRA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding LAir Liquide SA and ULTRA CLEAN HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULTRA CLEAN HLDGS and LAir 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 LAir Liquide SA are associated (or correlated) with ULTRA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULTRA CLEAN HLDGS has no effect on the direction of LAir Liquide i.e., LAir Liquide and ULTRA CLEAN go up and down completely randomly.
Pair Corralation between LAir Liquide and ULTRA CLEAN
Assuming the 90 days trading horizon LAir Liquide is expected to generate 19.82 times less return on investment than ULTRA CLEAN. But when comparing it to its historical volatility, LAir Liquide SA is 3.35 times less risky than ULTRA CLEAN. It trades about 0.01 of its potential returns per unit of risk. ULTRA CLEAN HLDGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,120 in ULTRA CLEAN HLDGS on July 20, 2025 and sell it today you would earn a total of 340.00 from holding ULTRA CLEAN HLDGS or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAir Liquide SA vs. ULTRA CLEAN HLDGS
Performance |
| Timeline |
| LAir Liquide SA |
| ULTRA CLEAN HLDGS |
LAir Liquide and ULTRA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAir Liquide and ULTRA CLEAN
The main advantage of trading using opposite LAir Liquide and ULTRA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAir Liquide position performs unexpectedly, ULTRA CLEAN 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 ULTRA CLEAN will offset losses from the drop in ULTRA CLEAN's long position.| LAir Liquide vs. GRIFFIN MINING LTD | LAir Liquide vs. Yanzhou Coal Mining | LAir Liquide vs. Zoom Video Communications | LAir Liquide vs. COMTECH TELECOMM |
| ULTRA CLEAN vs. COSTCO WHOLESALE CDR | ULTRA CLEAN vs. Sun Art Retail | ULTRA CLEAN vs. SCANDMEDICAL SOLDK 040 | ULTRA CLEAN vs. ONWARD MEDICAL BV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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