Correlation Between Park Ohio and LOEWS
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By analyzing existing cross correlation between Park Ohio Holdings and LOEWS P 6, you can compare the effects of market volatilities on Park Ohio and LOEWS 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 Park Ohio with a short position of LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Ohio and LOEWS.
Diversification Opportunities for Park Ohio and LOEWS
Excellent diversification
The 3 months correlation between Park and LOEWS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Park Ohio Holdings and LOEWS P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 6 and Park Ohio 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 Park Ohio Holdings are associated (or correlated) with LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 6 has no effect on the direction of Park Ohio i.e., Park Ohio and LOEWS go up and down completely randomly.
Pair Corralation between Park Ohio and LOEWS
Given the investment horizon of 90 days Park Ohio Holdings is expected to under-perform the LOEWS. In addition to that, Park Ohio is 1.95 times more volatile than LOEWS P 6. It trades about -0.22 of its total potential returns per unit of risk. LOEWS P 6 is currently generating about 0.1 per unit of volatility. If you would invest 10,754 in LOEWS P 6 on September 12, 2024 and sell it today you would earn a total of 73.00 from holding LOEWS P 6 or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Park Ohio Holdings vs. LOEWS P 6
Performance |
| Timeline |
| Park Ohio Holdings |
| LOEWS P 6 |
Park Ohio and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Ohio and LOEWS
The main advantage of trading using opposite Park Ohio and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Ohio position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
| LOEWS vs. AEP TEX INC | LOEWS vs. US BANK NATIONAL | LOEWS vs. Recursion Pharmaceuticals | LOEWS vs. SoundHound AI |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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