Correlation Between Ingersoll Rand and Helios Technologies
Can any of the company-specific risk be diversified away by investing in both Ingersoll Rand and Helios Technologies 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 Helios Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingersoll Rand and Helios Technologies, you can compare the effects of market volatilities on Ingersoll Rand and Helios Technologies 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 Helios Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingersoll Rand and Helios Technologies.
Diversification Opportunities for Ingersoll Rand and Helios Technologies
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ingersoll and Helios is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ingersoll Rand and Helios Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Technologies 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 Helios Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Technologies has no effect on the direction of Ingersoll Rand i.e., Ingersoll Rand and Helios Technologies go up and down completely randomly.
Pair Corralation between Ingersoll Rand and Helios Technologies
Allowing for the 90-day total investment horizon Ingersoll Rand is expected to generate 1.2 times more return on investment than Helios Technologies. However, Ingersoll Rand is 1.2 times more volatile than Helios Technologies. It trades about -0.15 of its potential returns per unit of risk. Helios Technologies is currently generating about -0.2 per unit of risk. If you would invest 9,188 in Ingersoll Rand on November 18, 2024 and sell it today you would lose (616.00) from holding Ingersoll Rand or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingersoll Rand vs. Helios Technologies
Performance |
| Timeline |
| Ingersoll Rand |
| Helios Technologies |
Ingersoll Rand and Helios Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingersoll Rand and Helios Technologies
The main advantage of trading using opposite Ingersoll Rand and Helios Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingersoll Rand position performs unexpectedly, Helios Technologies 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 Helios Technologies will offset losses from the drop in Helios Technologies' long position.| Ingersoll Rand vs. IDEX Corporation | Ingersoll Rand vs. Flowserve | Ingersoll Rand vs. Donaldson | Ingersoll Rand vs. Franklin Electric Co |
| Helios Technologies vs. Enpro Industries | Helios Technologies vs. Omega Flex | Helios Technologies vs. Luxfer Holdings PLC | Helios Technologies vs. Hurco Companies |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |