Correlation Between Parker Hannifin and Mobix Labs
Can any of the company-specific risk be diversified away by investing in both Parker Hannifin and Mobix Labs 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 Mobix Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parker Hannifin and Mobix Labs, you can compare the effects of market volatilities on Parker Hannifin and Mobix Labs 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 Mobix Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and Mobix Labs.
Diversification Opportunities for Parker Hannifin and Mobix Labs
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Parker and Mobix is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs 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 Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and Mobix Labs go up and down completely randomly.
Pair Corralation between Parker Hannifin and Mobix Labs
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 0.26 times more return on investment than Mobix Labs. However, Parker Hannifin is 3.92 times less risky than Mobix Labs. It trades about 0.11 of its potential returns per unit of risk. Mobix Labs is currently generating about -0.02 per unit of risk. If you would invest 29,046 in Parker Hannifin on September 3, 2024 and sell it today you would earn a total of 41,244 from holding Parker Hannifin or generate 142.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Parker Hannifin vs. Mobix Labs
Performance |
| Timeline |
| Parker Hannifin |
| Mobix Labs |
Parker Hannifin and Mobix Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and Mobix Labs
The main advantage of trading using opposite Parker Hannifin and Mobix Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, Mobix Labs 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 Mobix Labs will offset losses from the drop in Mobix Labs' long position.| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
| Mobix Labs vs. Silicon Motion Technology | Mobix Labs vs. ASE Industrial Holding | Mobix Labs vs. ChipMOS Technologies | Mobix Labs vs. SemiLEDS |
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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