Correlation Between Oshkosh and Columbus McKinnon
Can any of the company-specific risk be diversified away by investing in both Oshkosh and Columbus McKinnon 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 Oshkosh and Columbus McKinnon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshkosh and Columbus McKinnon, you can compare the effects of market volatilities on Oshkosh and Columbus McKinnon 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 Oshkosh with a short position of Columbus McKinnon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshkosh and Columbus McKinnon.
Diversification Opportunities for Oshkosh and Columbus McKinnon
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oshkosh and Columbus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Oshkosh and Columbus McKinnon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbus McKinnon and Oshkosh 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 Oshkosh are associated (or correlated) with Columbus McKinnon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbus McKinnon has no effect on the direction of Oshkosh i.e., Oshkosh and Columbus McKinnon go up and down completely randomly.
Pair Corralation between Oshkosh and Columbus McKinnon
Considering the 90-day investment horizon Oshkosh is expected to generate 0.47 times more return on investment than Columbus McKinnon. However, Oshkosh is 2.15 times less risky than Columbus McKinnon. It trades about 0.15 of its potential returns per unit of risk. Columbus McKinnon is currently generating about -0.23 per unit of risk. If you would invest 9,542 in Oshkosh on November 18, 2024 and sell it today you would earn a total of 1,198 from holding Oshkosh or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshkosh vs. Columbus McKinnon
Performance |
| Timeline |
| Oshkosh |
| Columbus McKinnon |
Oshkosh and Columbus McKinnon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshkosh and Columbus McKinnon
The main advantage of trading using opposite Oshkosh and Columbus McKinnon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshkosh position performs unexpectedly, Columbus McKinnon 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 Columbus McKinnon will offset losses from the drop in Columbus McKinnon's long position.| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitowoc |
| Columbus McKinnon vs. Lindsay | Columbus McKinnon vs. Astec Industries | Columbus McKinnon vs. Shyft Group | Columbus McKinnon vs. AGCO Corporation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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