Correlation Between Impax Asset and WW Grainger
Can any of the company-specific risk be diversified away by investing in both Impax Asset and WW Grainger 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 Impax Asset and WW Grainger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and WW Grainger, you can compare the effects of market volatilities on Impax Asset and WW Grainger 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 Impax Asset with a short position of WW Grainger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and WW Grainger.
Diversification Opportunities for Impax Asset and WW Grainger
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Impax and 0IZI is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and WW Grainger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WW Grainger and Impax Asset 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 Impax Asset Management are associated (or correlated) with WW Grainger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WW Grainger has no effect on the direction of Impax Asset i.e., Impax Asset and WW Grainger go up and down completely randomly.
Pair Corralation between Impax Asset and WW Grainger
Assuming the 90 days trading horizon Impax Asset Management is expected to under-perform the WW Grainger. But the stock apears to be less risky and, when comparing its historical volatility, Impax Asset Management is 3.82 times less risky than WW Grainger. The stock trades about -0.04 of its potential returns per unit of risk. The WW Grainger is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 55,535 in WW Grainger on September 14, 2024 and sell it today you would earn a total of 59,253 from holding WW Grainger or generate 106.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.78% |
| Values | Daily Returns |
Impax Asset Management vs. WW Grainger
Performance |
| Timeline |
| Impax Asset Management |
| WW Grainger |
Impax Asset and WW Grainger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and WW Grainger
The main advantage of trading using opposite Impax Asset and WW Grainger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset position performs unexpectedly, WW Grainger 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 WW Grainger will offset losses from the drop in WW Grainger's long position.| Impax Asset vs. Catalyst Media Group | Impax Asset vs. CATLIN GROUP | Impax Asset vs. Tamburi Investment Partners | Impax Asset vs. Magnora ASA |
| WW Grainger vs. Mindflair Plc | WW Grainger vs. Cairo Communication SpA | WW Grainger vs. Impax Asset Management | WW Grainger vs. Charter Communications Cl |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |