Correlation Between Oshkosh and Manitowoc
Can any of the company-specific risk be diversified away by investing in both Oshkosh and Manitowoc 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 Manitowoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshkosh and Manitowoc, you can compare the effects of market volatilities on Oshkosh and Manitowoc 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 Manitowoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshkosh and Manitowoc.
Diversification Opportunities for Oshkosh and Manitowoc
Very poor diversification
The 3 months correlation between Oshkosh and Manitowoc is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Oshkosh and Manitowoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitowoc 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 Manitowoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitowoc has no effect on the direction of Oshkosh i.e., Oshkosh and Manitowoc go up and down completely randomly.
Pair Corralation between Oshkosh and Manitowoc
Considering the 90-day investment horizon Oshkosh is expected to generate 1.04 times less return on investment than Manitowoc. But when comparing it to its historical volatility, Oshkosh is 1.66 times less risky than Manitowoc. It trades about 0.04 of its potential returns per unit of risk. Manitowoc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Manitowoc on August 27, 2024 and sell it today you would earn a total of 133.00 from holding Manitowoc or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshkosh vs. Manitowoc
Performance |
| Timeline |
| Oshkosh |
| Manitowoc |
Oshkosh and Manitowoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshkosh and Manitowoc
The main advantage of trading using opposite Oshkosh and Manitowoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshkosh position performs unexpectedly, Manitowoc 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 Manitowoc will offset losses from the drop in Manitowoc's long position.| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitex International |
| Manitowoc vs. Oshkosh | Manitowoc vs. Alamo Group | Manitowoc vs. Wabash National | Manitowoc vs. Hyster Yale Materials Handling |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |