Correlation Between Parker Hannifin and Graham
Specify exactly 2 symbols:
By analyzing existing cross correlation between Parker Hannifin and Graham Holdings 575, you can compare the effects of market volatilities on Parker Hannifin and Graham 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 Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and Graham.
Diversification Opportunities for Parker Hannifin and Graham
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Parker and Graham is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and Graham Holdings 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 575 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 Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings 575 has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and Graham go up and down completely randomly.
Pair Corralation between Parker Hannifin and Graham
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 11.08 times more return on investment than Graham. However, Parker Hannifin is 11.08 times more volatile than Graham Holdings 575. It trades about 0.24 of its potential returns per unit of risk. Graham Holdings 575 is currently generating about -0.21 per unit of risk. If you would invest 63,353 in Parker Hannifin on September 2, 2024 and sell it today you would earn a total of 6,937 from holding Parker Hannifin or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Parker Hannifin vs. Graham Holdings 575
Performance |
| Timeline |
| Parker Hannifin |
| Graham Holdings 575 |
Parker Hannifin and Graham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and Graham
The main advantage of trading using opposite Parker Hannifin and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.The idea behind Parker Hannifin and Graham Holdings 575 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Graham vs. Harmony Gold Mining | Graham vs. Parker Hannifin | Graham vs. Village Super Market | Graham vs. GMS Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |