Correlation Between Parker Hannifin and Camber Energy
Can any of the company-specific risk be diversified away by investing in both Parker Hannifin and Camber Energy 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 Parker Hannifin and Camber Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parker Hannifin and Camber Energy, you can compare the effects of market volatilities on Parker Hannifin and Camber Energy 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 Parker Hannifin with a short position of Camber Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and Camber Energy.
Diversification Opportunities for Parker Hannifin and Camber Energy
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Parker and Camber is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and Camber Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camber Energy and Parker Hannifin 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 Parker Hannifin are associated (or correlated) with Camber Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camber Energy has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and Camber Energy go up and down completely randomly.
Pair Corralation between Parker Hannifin and Camber Energy
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 0.24 times more return on investment than Camber Energy. However, Parker Hannifin is 4.19 times less risky than Camber Energy. It trades about 0.13 of its potential returns per unit of risk. Camber Energy is currently generating about -0.1 per unit of risk. If you would invest 45,944 in Parker Hannifin on August 28, 2024 and sell it today you would earn a total of 24,498 from holding Parker Hannifin or generate 53.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Parker Hannifin vs. Camber Energy
Performance |
| Timeline |
| Parker Hannifin |
| Camber Energy |
Parker Hannifin and Camber Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and Camber Energy
The main advantage of trading using opposite Parker Hannifin and Camber Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, Camber Energy 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 Camber Energy will offset losses from the drop in Camber Energy's long position.| Parker Hannifin vs. Aquagold International | Parker Hannifin vs. Morningstar Unconstrained Allocation | Parker Hannifin vs. High Yield Municipal Fund | Parker Hannifin vs. Thrivent High Yield |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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