Correlation Between Columbus McKinnon and Oshkosh
Can any of the company-specific risk be diversified away by investing in both Columbus McKinnon and Oshkosh 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 Columbus McKinnon and Oshkosh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbus McKinnon and Oshkosh, you can compare the effects of market volatilities on Columbus McKinnon and Oshkosh 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 Columbus McKinnon with a short position of Oshkosh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbus McKinnon and Oshkosh.
Diversification Opportunities for Columbus McKinnon and Oshkosh
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Columbus and Oshkosh is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Columbus McKinnon and Oshkosh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshkosh and Columbus McKinnon 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 Columbus McKinnon are associated (or correlated) with Oshkosh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshkosh has no effect on the direction of Columbus McKinnon i.e., Columbus McKinnon and Oshkosh go up and down completely randomly.
Pair Corralation between Columbus McKinnon and Oshkosh
Given the investment horizon of 90 days Columbus McKinnon is expected to under-perform the Oshkosh. In addition to that, Columbus McKinnon is 2.15 times more volatile than Oshkosh. It trades about -0.23 of its total potential returns per unit of risk. Oshkosh is currently generating about 0.15 per unit of volatility. If you would invest 9,542 in Oshkosh on November 18, 2024 and sell it today you would earn a total of 1,198 from holding Oshkosh or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbus McKinnon vs. Oshkosh
Performance |
| Timeline |
| Columbus McKinnon |
| Oshkosh |
Columbus McKinnon and Oshkosh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbus McKinnon and Oshkosh
The main advantage of trading using opposite Columbus McKinnon and Oshkosh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbus McKinnon position performs unexpectedly, Oshkosh 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 Oshkosh will offset losses from the drop in Oshkosh's long position.| Columbus McKinnon vs. Lindsay | Columbus McKinnon vs. Astec Industries | Columbus McKinnon vs. Shyft Group | Columbus McKinnon vs. AGCO Corporation |
| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitowoc |
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 Stocks Directory module to find actively traded stocks across global markets.
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