Correlation Between Parker Hannifin and JABHOL
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By analyzing existing cross correlation between Parker Hannifin and JABHOL 22 23 NOV 30, you can compare the effects of market volatilities on Parker Hannifin and JABHOL 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 JABHOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and JABHOL.
Diversification Opportunities for Parker Hannifin and JABHOL
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Parker and JABHOL is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and JABHOL 22 23 NOV 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JABHOL 22 23 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 JABHOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JABHOL 22 23 has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and JABHOL go up and down completely randomly.
Pair Corralation between Parker Hannifin and JABHOL
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 0.22 times more return on investment than JABHOL. However, Parker Hannifin is 4.55 times less risky than JABHOL. It trades about -0.13 of its potential returns per unit of risk. JABHOL 22 23 NOV 30 is currently generating about -0.32 per unit of risk. If you would invest 69,932 in Parker Hannifin on September 13, 2024 and sell it today you would lose (1,675) from holding Parker Hannifin or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Parker Hannifin vs. JABHOL 22 23 NOV 30
Performance |
| Timeline |
| Parker Hannifin |
| JABHOL 22 23 |
Parker Hannifin and JABHOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and JABHOL
The main advantage of trading using opposite Parker Hannifin and JABHOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, JABHOL 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 JABHOL will offset losses from the drop in JABHOL's 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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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