Correlation Between Nabors Industries and Parker Hannifin
Can any of the company-specific risk be diversified away by investing in both Nabors Industries 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 Nabors Industries and Parker Hannifin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Parker Hannifin, you can compare the effects of market volatilities on Nabors Industries 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 Nabors Industries with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Parker Hannifin.
Diversification Opportunities for Nabors Industries and Parker Hannifin
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nabors and Parker is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and Nabors Industries 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 Nabors Industries 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 Nabors Industries i.e., Nabors Industries and Parker Hannifin go up and down completely randomly.
Pair Corralation between Nabors Industries and Parker Hannifin
Considering the 90-day investment horizon Nabors Industries is expected to under-perform the Parker Hannifin. In addition to that, Nabors Industries is 2.06 times more volatile than Parker Hannifin. It trades about -0.03 of its total potential returns per unit of risk. Parker Hannifin is currently generating about 0.11 per unit of volatility. If you would invest 28,489 in Parker Hannifin on September 14, 2024 and sell it today you would earn a total of 39,768 from holding Parker Hannifin or generate 139.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Parker Hannifin
Performance |
| Timeline |
| Nabors Industries |
| Parker Hannifin |
Nabors Industries and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Parker Hannifin
The main advantage of trading using opposite Nabors Industries and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries 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.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Noble plc | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Sable Offshore Corp |
| Parker Hannifin vs. Hurco Companies | Parker Hannifin vs. Enerpac Tool Group | Parker Hannifin vs. China Yuchai International | Parker Hannifin vs. Luxfer Holdings PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |