Timken Correlations

TKR Stock

USD 75.22 1.28 1.73%

The current 90-days correlation between Timken Company and Toro Co is 0.03 (i.e., Significant diversification). The correlation of Timken is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Timken Correlation With Market

Very weak diversification

The correlation between Timken Company and DJI is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Timken Company and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Timken Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry.

Moving together with Timken Stock

0.79	EML	Eastern	Pair Corr
0.75	SWK	Stanley Black Decker	Pair Corr
0.63	FC	Franklin Covey	Pair Corr
0.9	HY	Hyster Yale Materials	Pair Corr

Moving against Timken Stock

0.61	DIST	Distoken Acquisition	Pair Corr
0.57	KMT	Kennametal	Pair Corr
0.56	RBC	RBC Bearings	Pair Corr
0.45	R	Ryder System	Pair Corr
0.45	AL	Air Lease	Pair Corr
0.44	SNA	Snap On	Pair Corr
0.41	MKTAY	Makita Corp	Pair Corr
0.61	BE	Bloom Energy Corp Trending	Pair Corr
0.54	CR	Crane Company	Pair Corr
0.51	KE	Kimball Electronics	Pair Corr
0.4	AZ	A2Z Smart Technologies	Pair Corr
0.34	HI	Hillenbrand	Pair Corr

Related Correlations Analysis

	TTC	KMT	SNA	SCX	EML	LECO	HLMN	RBCP	SWK
TTC		-0.05	-0.47	-0.14	-0.03	-0.04	-0.43	0.19	0.24	TTC
KMT	-0.05		0.78	0.48	-0.55	0.83	0.66	-0.03	-0.62	KMT
SNA	-0.47	0.78		0.34	-0.37	0.84	0.79	0.11	-0.66	SNA
SCX	-0.14	0.48	0.34		-0.39	0.3	0.33	-0.37	-0.38	SCX
EML	-0.03	-0.55	-0.37	-0.39		-0.31	0.04	0.08	0.85	EML
LECO	-0.04	0.83	0.84	0.3	-0.31		0.67	0.3	-0.48	LECO
HLMN	-0.43	0.66	0.79	0.33	0.04	0.67		-0.03	-0.22	HLMN
RBCP	0.19	-0.03	0.11	-0.37	0.08	0.3	-0.03		-0.03	RBCP
SWK	0.24	-0.62	-0.66	-0.38	0.85	-0.48	-0.22	-0.03		SWK
	TTC	KMT	SNA	SCX	EML	LECO	HLMN	RBCP	SWK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

SWK	+ 0.85	EML
LECO	+ 0.84	SNA
LECO	+ 0.83	KMT
HLMN	+ 0.79	SNA
SNA	+ 0.78	KMT
HLMN	+ 0.67	LECO

High negative correlations

SWK	- 0.66	SNA
SWK	- 0.62	KMT
EML	- 0.55	KMT
SWK	- 0.48	LECO
SNA	- 0.47	TTC
HLMN	- 0.43	TTC

Risk-Adjusted Indicators

There is a big difference between Timken Stock performing well and Timken Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Timken's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TTC	1.14	(0.20)	0.00	(0.14)	0.00	0.00	1.93	(2.19)	11.51
KMT	1.43	(0.02)	0.07	0.08	1.49	(1.56)	2.76	(2.06)	23.53
SNA	0.99	0.29	0.43	0.31	0.00	(1.31)	2.22	(0.96)	10.93
SCX	2.52	0.27	0.07	0.79	2.93	(2.75)	6.74	(5.00)	16.39
EML	1.76	(0.08)	0.00	(0.03)	0.00	0.00	4.10	(3.42)	12.25
LECO	1.39	(0.06)	0.00	0.05	1.50	(1.62)	3.09	(2.12)	9.04
HLMN	1.34	0.14	0.12	0.19	1.22	(1.60)	3.36	(2.18)	7.63
RBCP	0.98	(0.07)	0.00	(0.52)	0.00	0.00	2.00	(3.08)	7.74
SWK	1.18	(0.21)	0.00	(0.40)	0.00	0.00	2.41	(1.86)	12.37

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