Correlation Between Koppers Holdings and Linde Plc
Can any of the company-specific risk be diversified away by investing in both Koppers Holdings and Linde Plc 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 Koppers Holdings and Linde Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koppers Holdings and Linde plc Ordinary, you can compare the effects of market volatilities on Koppers Holdings and Linde Plc 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 Koppers Holdings with a short position of Linde Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koppers Holdings and Linde Plc.
Diversification Opportunities for Koppers Holdings and Linde Plc
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koppers and Linde is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Koppers Holdings and Linde plc Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linde plc Ordinary and Koppers Holdings 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 Koppers Holdings are associated (or correlated) with Linde Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linde plc Ordinary has no effect on the direction of Koppers Holdings i.e., Koppers Holdings and Linde Plc go up and down completely randomly.
Pair Corralation between Koppers Holdings and Linde Plc
Considering the 90-day investment horizon Koppers Holdings is expected to under-perform the Linde Plc. In addition to that, Koppers Holdings is 3.68 times more volatile than Linde plc Ordinary. It trades about -0.07 of its total potential returns per unit of risk. Linde plc Ordinary is currently generating about 0.02 per unit of volatility. If you would invest 46,705 in Linde plc Ordinary on June 11, 2025 and sell it today you would earn a total of 247.00 from holding Linde plc Ordinary or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koppers Holdings vs. Linde plc Ordinary
Performance |
| Timeline |
| Koppers Holdings |
| Linde plc Ordinary |
Koppers Holdings and Linde Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koppers Holdings and Linde Plc
The main advantage of trading using opposite Koppers Holdings and Linde Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koppers Holdings position performs unexpectedly, Linde Plc 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 Linde Plc will offset losses from the drop in Linde Plc's long position.| Koppers Holdings vs. H B Fuller | Koppers Holdings vs. Minerals Technologies | Koppers Holdings vs. Quaker Chemical | Koppers Holdings vs. Oil Dri |
| Linde Plc vs. Air Products and | Linde Plc vs. PPG Industries | Linde Plc vs. Sherwin Williams Co | Linde Plc vs. Ecolab Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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