Correlation Between MW Investment and Parker Hannifin
Can any of the company-specific risk be diversified away by investing in both MW Investment and Parker Hannifin 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 MW Investment and Parker Hannifin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MW Investment Holding and Parker Hannifin, you can compare the effects of market volatilities on MW Investment and Parker Hannifin 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 MW Investment with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MW Investment and Parker Hannifin.
Diversification Opportunities for MW Investment and Parker Hannifin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEGH and Parker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MW Investment Holding and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and MW Investment 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 MW Investment Holding are associated (or correlated) with Parker Hannifin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parker Hannifin has no effect on the direction of MW Investment i.e., MW Investment and Parker Hannifin go up and down completely randomly.
Pair Corralation between MW Investment and Parker Hannifin
If you would invest 62,363 in Parker Hannifin on August 30, 2024 and sell it today you would earn a total of 7,625 from holding Parker Hannifin or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MW Investment Holding vs. Parker Hannifin
Performance |
| Timeline |
| MW Investment Holding |
| Parker Hannifin |
MW Investment and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MW Investment and Parker Hannifin
The main advantage of trading using opposite MW Investment and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MW Investment position performs unexpectedly, Parker Hannifin 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 Parker Hannifin will offset losses from the drop in Parker Hannifin's long position.| MW Investment vs. Parker Hannifin | MW Investment vs. Eaton PLC | MW Investment vs. Dover | MW Investment vs. Illinois Tool Works |
| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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