Correlation Between Ingersoll Rand and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Ingersoll Rand and Clean Energy 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 Ingersoll Rand and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingersoll Rand and Clean Energy Technologies,, you can compare the effects of market volatilities on Ingersoll Rand and Clean Energy 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 Ingersoll Rand with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingersoll Rand and Clean Energy.
Diversification Opportunities for Ingersoll Rand and Clean Energy
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ingersoll and Clean is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ingersoll Rand and Clean Energy Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Technol and Ingersoll Rand 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 Ingersoll Rand are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Technol has no effect on the direction of Ingersoll Rand i.e., Ingersoll Rand and Clean Energy go up and down completely randomly.
Pair Corralation between Ingersoll Rand and Clean Energy
Allowing for the 90-day total investment horizon Ingersoll Rand is expected to generate 0.23 times more return on investment than Clean Energy. However, Ingersoll Rand is 4.37 times less risky than Clean Energy. It trades about 0.19 of its potential returns per unit of risk. Clean Energy Technologies, is currently generating about 0.0 per unit of risk. If you would invest 9,726 in Ingersoll Rand on August 31, 2024 and sell it today you would earn a total of 679.00 from holding Ingersoll Rand or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingersoll Rand vs. Clean Energy Technologies,
Performance |
| Timeline |
| Ingersoll Rand |
| Clean Energy Technol |
Ingersoll Rand and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingersoll Rand and Clean Energy
The main advantage of trading using opposite Ingersoll Rand and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingersoll Rand position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| Ingersoll Rand vs. Flowserve | Ingersoll Rand vs. Franklin Electric Co | Ingersoll Rand vs. Watts Water Technologies | Ingersoll Rand vs. Gorman Rupp |
| Clean Energy vs. Graco Inc | Clean Energy vs. Franklin Electric Co | Clean Energy vs. Flowserve | Clean Energy vs. Donaldson |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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