Correlation Between Parker Hannifin and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Parker Hannifin and SAIHEAT 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 SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parker Hannifin and SAIHEAT Limited, you can compare the effects of market volatilities on Parker Hannifin and SAIHEAT 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 SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and SAIHEAT.
Diversification Opportunities for Parker Hannifin and SAIHEAT
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Parker and SAIHEAT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and SAIHEAT go up and down completely randomly.
Pair Corralation between Parker Hannifin and SAIHEAT
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 0.18 times more return on investment than SAIHEAT. However, Parker Hannifin is 5.69 times less risky than SAIHEAT. It trades about 0.23 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.13 per unit of risk. If you would invest 63,927 in Parker Hannifin on October 20, 2024 and sell it today you would earn a total of 3,019 from holding Parker Hannifin or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Parker Hannifin vs. SAIHEAT Limited
Performance |
| Timeline |
| Parker Hannifin |
| SAIHEAT Limited |
Parker Hannifin and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and SAIHEAT
The main advantage of trading using opposite Parker Hannifin and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
| SAIHEAT vs. Adient PLC | SAIHEAT vs. Office Properties Income | SAIHEAT vs. FDG Electric Vehicles | SAIHEAT vs. Modine Manufacturing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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