Correlation Between Parker Hannifin and Shenguan Holdings
Can any of the company-specific risk be diversified away by investing in both Parker Hannifin and Shenguan Holdings 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 Shenguan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parker Hannifin and Shenguan Holdings Group, you can compare the effects of market volatilities on Parker Hannifin and Shenguan Holdings 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 Shenguan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and Shenguan Holdings.
Diversification Opportunities for Parker Hannifin and Shenguan Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Parker and Shenguan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and Shenguan Holdings Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenguan Holdings 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 Shenguan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenguan Holdings has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and Shenguan Holdings go up and down completely randomly.
Pair Corralation between Parker Hannifin and Shenguan Holdings
If you would invest 45,524 in Parker Hannifin on September 14, 2024 and sell it today you would earn a total of 21,860 from holding Parker Hannifin or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Parker Hannifin vs. Shenguan Holdings Group
Performance |
| Timeline |
| Parker Hannifin |
| Shenguan Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Parker Hannifin and Shenguan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and Shenguan Holdings
The main advantage of trading using opposite Parker Hannifin and Shenguan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, Shenguan Holdings 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 Shenguan Holdings will offset losses from the drop in Shenguan Holdings' long position.| Parker Hannifin vs. Hurco Companies | Parker Hannifin vs. Enerpac Tool Group | Parker Hannifin vs. China Yuchai International | Parker Hannifin vs. Luxfer Holdings PLC |
| Shenguan Holdings vs. Ryanair Holdings PLC | Shenguan Holdings vs. RBC Bearings Incorporated | Shenguan Holdings vs. MYR Group | Shenguan Holdings vs. Everus Construction Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |